Risk is a condition where the use of a system could result in a high probability of devastating consequences, such as injury or death to humans, catastrophic financial losses, or environmental devastation. Risk is highest when there is an unsafe use of a system that is hazardous. The system is complex, having an unusual performance condition, and safe operation may push human operators beyond their educational, psychological, performance, or training limitations.
Increasingly, Risks arise from the actions of human attackers, sophisticated intruders, unsophisticated intruders, automated attacks, disgruntled employees and ex-employees, competitors and foreign governments, contractors, managers and executives, the forces of nature and electrical phenomena. See script kiddies, security.
Technipages Explains Risk
Risk is the tendency for there to be a loss of something of value due to the use of an object. Any action taken is affected risk; it could either increase or decrease the risk. Risks are hinged on uncertainty, and they are the effects of uncertainties on a business decision. It is the likelihood for there to be loss pending from a decision.
Increase of risks can stem from several things from the installation of new infrastructures, expiration of infrastructures, poor maintenance of facilities, incompetence of users of facilities, intentional sabotage of facilities and the action of uncontrolled components of a system
Hence the need for Risk assessment which is the act of analyzing potential cause scenarios that could harm individuals or a group of individuals, and it helps to determine gravity or effect a wrong decision could have, the most important ways to avoid the loss or reduce the damage.
A contingency to Risks is called Risk management, which is the plan put in place before and after events that could lead to the loss of lives. It is also part of the management of risk to organize resources to avoid unfortunate events, and in the face of occurrence of an adverse event, risk management is aimed at preventing further losses and also containing the incident.
Common Uses of Risk
- Risk management is the contingency plan put in place before and after events that could lead to the loss of lives.
- Risk assessment is the act of analyzing potential cause scenarios that could harm individuals or a group of individuals, and it helps to determine gravity or effect a wrong decision could have
- Risk is the tendency for there to be a loss of something of value due to the use of an object. Any action taken is the affected risk
Common Misuses of Risk
- Sometimes being able to quantify risk doesn’t necessarily mean can control it, anything that convinces you otherwise is a fallacy in modern finance