ARL Logo
Risky Thinking
On Risk Management, Business Continuity, and Security
17 January, 2018
Create your
Risk Register
the easy way
with the

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.

You are welcome to use these definitions for any purpose provided that an acknowledgement is made
to www.riskythinking.com and (if you're using HTML) you provide a link back to this site.

[ Back to Risk Glossary ]

Risky Thinking Newsletter

Are you responsible for Business Continuity, Disaster Recovery, or Risk Management in your organization? Then you may wish to receive a free subscription to the the monthly Risky Thinking Newsletter. It contains news, opinions and articles of interest to people working in these areas.

View a sample issue, or click here to subscribe.

Recent articles have included:

The IT department is frequently the most prepared part of an organization when it comes to business continuity. However, in examining business continuity plans, we find that there are some areas that IT departments often miss Read more...

© Albion Research Ltd. 2018