Risk Versus Uncertainty

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Risk Versus Uncertainty
Tejas, Member
In the management of risk, what is the distinction between risk and uncertainty? Thanks..
 

 
Risk versus Uncertainty
Balachandran Nair, Bank Official, India, Member
In risk management there is a presupposition that an event may probably happen, and this lends itself to assessment. In uncertainty the probability remains zero at the outset.
 

 
Risk versus Uncertainty
Hisham Albuolayan, Analyst, Saudi Arabia, Member
For me RISK is an event that can be of negative effect to the organization. While UNCERTAINTY is the consequence of un-assessed risks.
 

 
Risk, Uncertainty, Reality, Loss and Probability
Sandris, Latvia, Member
Risk is uncertain. If it is certain this is not a risk. Then it is a reality and we do not speak about risk. We can say then this is a loss. Losses can take place on a daily basis. So, there is no need to make an assumption what kind of risk can occur.
Uncertainty is the probability something will occur. How uncertain is a risk? Or we can also say: what is the probability a particular risk will occur?
 

 
Risk Versus Uncertainty
Nelson Hernandez Manso
Risk can be an opportunity or a threat.
We can put 3% more money for the threat of change the supplier.
We will watch the opportunity to buy the near terrain and will use it as a cheap warehouse.
Uncertainty: I don't know if something will be a risk or an opportunity or a threat. God's fury. We can hide 5% for uncertainty risk. Flood (on rain season), hurricanes (near a hurricane geo area).
 

 
Risk is an Identified Uncertainty
Mark Scherling, Business Consultant, Canada, Member
Risk is an identified uncertainty that we consider in planning. Typically we are unsure about the scope or probability that a risk will occur. A loss is a realized risk. The reality is that we can only guess how big a loss will be if it occurs if there is a lot of uncertainty in our risk calculation.
 

 
Risk and Uncertainty
Raj Kumar, Management Consultant, India, Member
Risk is uncertainty that matters.
This means that all that is uncertain is not risk. However, when a firm thinks the uncertainty might impact it, the uncertainty becomes a risk.
 

 
Differences Between Risk and Uncertainty
oscar piedra, Financial Consultant, Afghanistan, Member
Some economists like Keynes and Knight thought and wrote about the distinction betweeen risk and uncertainty:
- In the case of risk, probabilities can be attached,
- In the case of uncertainty probabilities cannot be established, uncalculable.
 

 
What is the Distinction Between Risk and Uncertainty
Barbara Dickerson, Manager, United States, Member
To quote a CE course that I have just taken: "Risk is defined as uncertainty concerning loss. The two key words here are uncertainty and loss. It is important to understand that risk is connected to the uncertainty, not the loss itself.
 

 
1st Law of Risk Management
Khalil Shahriari PMP, Management Consultant, Iran, Member
The first law of risk management is that risk is uncertain.
A risk is something in the future that might or might not occur. Risks do not yet exist, indeed they may never exist at all. They are potential future events or sets of circumstances or conditions.
This makes them quite different from things which have happened in the past or which currently exist in the present. Past and present events can be analysed and measured, but future events can only be imagined or estimated.
A risk which may or may not exist in the future cannot be experienced directly unless or until it happens. This makes risks different from issues, problems or constraints. In every type of risk management, risk is in the future, which is inherently uncertain.
 

     
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