What is risk: Definitions of risk range from narrow

Definitions of risk range from narrow definitions - risks to people or machinery resulting from hazards - to wide definitions that see risk as any uncertainty of outcome. The diagram at the top of this article shows how risk can be defined in narrow, medium, and broad ways. What is the definition of risk? What does systematic risk and idiosyncratic risk mean? What are the different types of risk personalities? Risk is the statistical expectation value of an unwanted event which may or may not occur. The expectation value of a possible negative event is the product of its probability and some measure of its severity. It is common to use the number of killed persons as a measure of the severity of an accident. Risk is the potential for a loss or negative outcome caused by action or inaction. Learn about the basic things to know about risk, such as risk exposure, risk tolerance, risk management and more.