BNET Business Dictionary
Business Definition for: Risk
- the possibility of suffering damage or loss in the face of uncertainty about the outcome of actions, future events, or circumstances. Organizations are exposed to various types of risk, including damage to property, injury to personnel, financial loss, and legal liability. These may affect profitability, hinder the achievement of objectives, or lead to business interruption or failure. Risk may be deemed high or low, depending on the probability of an adverse outcome. Risks that can be quantified on the basis of past experience are insurable and those that cannot be calculated are uninsurable.
- a condition in which there exists a quantifiable dispersion in the possible outcomes from any activity
Wiktionary Definition for: Risk
- A possible, usually negative, outcome, e.g., a danger.
- The likelihood of a negative outcome.
- italbrac Formal use in business, engineering, etc. The potential (conventionally negative) impact of an event, determined by combining the likelihood of the event occurring with the impact should it occur.
- To incur risk to something .
- To incur risk of something .
- To incur risk by something .
Additional Resources
- Boost Your Returns by Conquering Risk
- Risk is hard to define and even harder to detect or measure. But if you don't understand how much you can stand, you're liable to find yourself in the wrong investments at the wrong time. We think we know what risk is, but it’s a...
- Articles 2009-09-14
- One B/D's Take on Assessing Risk
- Kol Birke, a financial behavior specialist with the independent broker/dealer Commonwealth Financial Network, suggests that advisors develop a risk score for clients after discussing four topics with them: risk tolerance, goals, behavior, and investment knowledge. (In the case of a client couple, I would advise that you query each spouse...
- News items 2009-10-28
- Assessing Exchange Rate Risk
- When companies undertake international business, they take a risk because their investments and business operations may be affected by changes in the exchange rates for different currencies. This risk is known as exchange rate risk.Increasingly, companies are fighting for a slice of global markets, particularly in developing nations, and putting...
- Articles 2007-12-06
- Assessing Risk-adjusted Rate of Return
- Risk-adjusted Rate of Return is a performance measure that adjusts for the initial risk an investor takes at the time of a purchase.Every investor works with risk, but if they can quantify it, they should be able to make more informed decisions about which risks are worth taking. Calculating risk-adjusted...
- Articles 2007-12-12
- Universal Risk Project Final Report
- The Risk Management Research and Development Program is a multi-association program designed to accomplish the following: Research, develop and promulgate suggested Project Risk Management practices, tools and knowledge to enable and accelerate the transition of Project Risk Management from an art into a science. Within the overarching Program, there are...
- White papers 2002-02-01
- Enhance Risk Mapping
- "The article discusses an approach to assessing corporate risk in which it urges risk managers to create a holistic risk map. By assigning a the probability of occurrence and b the range of possible losses to potential future loss scenarios, it shows how a risk manager can use intuition...
- White papers 2003-01-01
- RBC Financial Takes An Enterprise Wide Approach To Operational Risk
- More and more people say business is driving operational-risk management. As business continuity becomes a necessity and the market remains volatile, operational risk has become a key boardroom issue and while the regulatory push for operational risk may have initially been the driving force, business drivers and efficiency have taken...
- White papers 2002-06-18
- Standard Steps to Manage Risk
- The article is about what is risk and why should one should be worried about it? For a treasury department trying to optimise the utilisation of cash, times are indeed hard. Businesses of all shapes and sizes have a never-ending demand for capital. The needs and uses to which cash...
- White papers 2003-02-06
- What is Missing from the RMIS Design? Why Enterprise Risk Management Is not Working
- Many risk managers have attempted to take enterprise risk management ERM from a slick consulting pitch to a practical management system. But while ERM has helped many of these professionals improve the strategic structure of their risk financing programs, few have fully achieved their ambitions. One obstacle is the risk...
- White papers 2003-01-01
- Managing Demographic Risk
- The Idea in Brief Around the globe, workforces are steadily aging, thanks to declining birth rates and the graying of the baby boom generation. Soon, boomers will be retiring in droves, taking critical knowledge and skills with...
- Articles 2008-03-03
- Controlling Corporate Risk Through Sabotage
- Every executive is in the business of controlling risk, or harms, but doing so is both a skill and an art that few of us practice. Corporate risk comes in many forms: pricing moves by a competitor, a product liability lawsuit, departure of a talented manager, a...
- Blog posts 2008-06-23
- NCI, Armfield Harrison & Thomas offer risk assessment, mitigation. (Ventures).
- NCI Information Systems and Armfield Harrison & Thomas, a risk management and insurance firm, have launched a new risk management offering, Risk IMT, to provide insurers with risk analysis and mitigation strategies. Risk IMT is a system for risk NCI Information Systems and Armfield Harrison...
- Research articles 2002-06-01
- Why Can't Boards Get Risk Management Right?
- Presumably, Sir James Crosby was trying to protect the FSA from further embarrassment by stepping down from his job as the regulator's deputy chair. But in resigning, he's brought to light the reason: that he's said to have ignored a red alert from a risk manager while in charge of...
- Blog posts 2009-02-11
- Principles for the Management of Credit Risk
- This article is related to credit risk management. Credit risk is most simply defined as the potential that a bank borrower or counterpart will fail to meet its obligations in accordance with agreed terms. The goal of credit risk management is to maximize a bank's risk-adjusted rate of return by...
- White papers 2000-09-01
- Risk Ranking For PHA, LOPA And Facility Siting-Part 2
- Risk ranking is a common methodology for making risk based decisions without conducting quantitative risk analysis. The basis for risk ranking is the risk matrix that has both a consequence and frequency axis. The product of consequence and frequency provides a measure of risk. Each consequence /frequency pair on the...
- White papers 2003-01-01
- Operational Risk Transfer
- All corporations face risks. Until recently, risks were identified within business units. Now the trend is to analyse risks on an enterprise-wide basis. Risk transfer to the insurance sector has been widely used for many years. Even though operational risks were not always classified in this way, mechanisms to transfer...
- White papers 2003-09-11
- Matrix Risk Management
- The global deregulating energy market faces a problem: risk management. Up until now, the methodologies and mathematics behind the measurement of energy risk have been handed down from academia and the financial markets. Over the years, it has become increasingly obvious that these methodologies are not necessarily appropriate for application...
- White papers 2002-01-01
- Protecting Your Business from Fire Risk
- Fires not only endangering life, but they can also be a serious blow to any business. In this article we give suggestions on how to cut the risk of fires occurring and measures you can take to minimize damage and danger should one occur. We also explain the legal obligations...
- Articles 2007-03-27
- Management : Risk Standards 1-9
- The article gives the idea of risk standards 1 to 9. The risk standard 1 states that Fiduciary responsibilities should be defined in writing and acknowledged in writing by the parties responsible. The standard 2 says that the Primary and Manager Fiduciaries should approve formal written policies, which reflect their...
- White papers 2003-01-01
- Measurement : Risk Standards 10-16
- The article explains the different risk standards. The risk standard 10 states that all readily priced instruments should be valued daily, less-readily priced instruments at least weekly and non-readily priced instruments as often as feasible and whenever a material event occurs. The standard 11 states that Material discrepancies in valuations...
- White papers 2003-01-01
