WHAT IS RISK ?
"Effect of uncertainty on objectives" • "Uncertainty" pertains less to the manner in which events will unfold and more to our level of understanding. It primarily reflects our "lack of knowledge" regarding the outcome of events. • Events will happen, we just don't know which, how and when. • Uncertainty is our ignorance. • Uncertainty is the state, even partial, of deficiency of information related to understanding or knowledge of an event, its consequence or likelihood. • If we replace this meaning of uncertainty in the definition of risk, we come up with: Risk = The effect of ignorance on objectives.
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