Definitions (6)
Related Terms
1. A probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action.
3. Food industry: The possibility that due to a certain hazard in food there will be an negative effect to a certain magnitude.
4. Insurance: A situation where the probability of a variable (such as burning down of a building) is known but when a mode of occurrence or the actual value of the occurrence (whether the fire will occur at a particular property) is not.
A risk is not an uncertainty (where neither the probability nor the mode of occurrence is known), a peril (cause of loss), or a hazard (something that makes the occurrence of a peril more likely or more severe).
5. Securities trading: The probability of a loss or drop in value. Trading risk is divided into two general categories: (1) Systemic risk affects all securities in the same class and is linked to the overall capital-market system and therefore cannot be eliminated by diversification. Also called market risk. (2) Nonsystematic risk is any risk that isn't market-related or is not systemic. Also called nonmarket risk, extra-market risk, or unsystemic risk.
6. Workplace: Product of the consequence and probability of a hazardous event or phenomenon.
For example, the risk of developing cancer is estimated as the incremental probability of developing cancer over a lifetime as a result of exposure to potential carcinogens (cancer-causing substances).

Use 'risk' in a Sentence

When trying to decide which business venture to pursue the one with the most risk may also have the most reward.
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Bob was not sure if he could drive home drunk - but he didn't want to leave his car at the bar overnight, so he got behind the wheel and took the risk of driving home.
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Putting money into the stock market will always be a risk, as you can never be sure whether or not the stock market will increase in value or drop in value.
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Notable Quotable

One Suggestion Amid Uncertainty
"The more thoroughly the prospects of a startup can be researched, the more competition it will face. If you wait for the uncertainty to disappear before committing to an idea, by then it will be clear to everyone else too. Sometimes you need to surf ahead of the wave."
- Tom Murcko
One Perspective on How Risk Comes About
"Risk comes from not knowing what you're doing."
- Warren Buffett