Definition of risk, what is the definition of risk

Risk, that is, the uncertainty between the purpose of production and the results of labor, has two meanings: one definition emphasizes that risk is manifested as uncertainty of returns; The other definition emphasizes that risk is the uncertainty of cost or price, and if risk is expressed as uncertainty of benefit or cost, it means that the result of risk may bring loss, profit, or no loss and no profit, which is a generalized risk.

The exercise of ownership by the owner should be considered as a management risk, and financial risk falls into this category. The risk is manifested as the uncertainty of loss, which means that the risk can only show losses, and there is no possibility of profit from the risk, which belongs to the narrow sense of risk.

Risk is directly proportional to return, so generally aggressive investors tend to be risky in order to obtain higher profits, while prudent investors focus on safety considerations.

Risk is the combination of the likelihood of a particular hazardous event (accident or accident) occurring and its consequences.

Risk refers to the possibility of a certain loss occurring in a specific environment and in a specific period of time. Risk is made up of elements such as risk factors, risk accidents, and risk losses. In other words, the distance between what people expect to achieve and what actually happens in a given period of time is called risk.

Risk is uncertainty about the future.

From time immemorial to the present, the course of human development has been full of risks, and risks have never left human life. What exactly is risk? Due to different research perspectives, the definition of risk is still controversial.

1. The definition of risk by foreign scholars.

In "General Business Economics", the French scholar Lehmann defines risk as "the possibility of loss occurring".

According to the German scholar Stadler, risk is "the possibility of affecting payments and accidents".

The American scholar Haynes defined risk as the possibility of damage or loss occurring in his book "Risk in the Economy" published in 1895.

In his book "Risk, Uncertainty and Profit" published in 1921, the American economist Knight argued: "Risk is a measurable uncertainty, which refers to the fact that although the information of an economic agent is insufficient, it can give a probability value for various situations that may occur in the future." ”

The Institute of Internal Auditors defines risk as: "Risk is the uncertainty of the occurrence of an event that affects the achievement of an objective." ”

According to ISO 31000 Risk Management Principles and Implementation Guidelines 2007, "Risk is the impact of uncertainty on objectives. ”

2. The definition of risk by domestic scholars.

Risk refers to the uncertainty of the ultimate loss caused by a certain event under specific circumstances and within a specific period. [1]

In terms of uncertainty, risk events can bring losses as well as gains. Therefore, a more general definition of risk is the deviation between actual and expected results. The expected outcome also has two meanings:

One is the desired outcome in people's minds; There is also the expected outcome in the sense of statistical science, which has two forms: the most likely outcome and the average result. Risks arise whenever actual results are likely to deviate from expected results. From the two dimensions of loss and uncertainty, risk can be defined as the amount of loss that people suffer due to the objective uncertainty of the outcome of the event and the probability of these losses occurring.

2] The basic meaning of risk refers to the uncertainty of the degree of change in various outcomes that may occur under certain conditions and in a certain period of time, which is the incomplete determination of the subjective understanding of the operation law of objective things, and the inability to manipulate and control its operation process for a while; It also includes the uncertainty of the outcome of things, people do not fully get the outcome they designed and wanted, and there are often unnecessary or unexpected losses. Risk can usually be expressed as a function of probability and consequence of occurrence in time: risk r=f(p,c); where:

p denotes the probability of an event occurring; c indicates the consequences of the occurrence of the event. [3]

Market risk refers to the risk that a trader will incur losses due to adverse changes in market conditions. Market conditions here include trading**, trading rules, supply and demand, liquidity, and more.

The concept of risk: risk refers to the uncertainty between the purpose of production and the result of labor, which has two meanings: one is to emphasize that risk is represented by the uncertainty of income; Another definition emphasizes that risk is represented by cost or uncertainty of cost.

If the risk manifests itself as uncertainty about benefits or costs, it indicates that the outcome of the risk may result in losses, profits, or no losses or profits, which is a generalized risk. The activity of the owner exercising ownership should be considered as a management risk, and financial risk falls into this category.

Risk is manifested as the uncertainty of loss, indicating that risk can only be manifested as loss, and there is no possibility of profit from risk, which belongs to risk in the narrow sense. Risk is proportional to reward, so generally active investors prefer high risk for higher profits, while stable investors focus on safety considerations.

Enterprises will encounter various uncertain events in the business activities to achieve their goals, and the probability of these events and their impact cannot be predicted in advance, and these events will have an impact on business activities, thereby affecting the degree of realization of the company's goals.

This kind of uncertain events that objectively exist in a certain environment and within a certain period of time and affect the realization of corporate goals are risks. To put it simply, risk is the degree of discrepancy between the desired goal and the actual result at a given time and under certain environmental conditions.

Due to the existence of risks and the increase in the costs that people must spend and the decrease in expected economic benefits after the occurrence of risk accidents, it is also known as the cost of risk. It includes the actual cost of risk loss, the intangible cost of risk loss and the cost of preventing and controlling risk loss.

Risk is the uncertainty between the purpose and the outcome, and it has two meanings: one definition emphasizes that risk manifests itself as uncertainty about returns. Another definition emphasizes that risk manifests itself as uncertainty about cost or cost.