Risk (Definition)

1. (ISO/IEC Guide 73). The combination of the probability of an event and its consequences.
2. (Business Continuity). The probability that an asset will be harmed due to a specific cause.
3. (Insurance). An asset which is insured. For example, if you have a life assurance policy and a homeowner's policy, the industry considers you and your house to be risks.

Risk is sometimes separated into pure risk — where the only possibility to be considered is that of loss — and speculative risk — where there is a possibility of gain as well as loss. From a business perspective, these distinctions are rarely useful since running a business (and all the risks that are involved) are speculative risks.