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Parent Node(s):
RISK
(1) In decision theory and in statistics, risk means
uncertainty for which the probability distribution is known.
Accordingly, RISK analysis] means a study to determine the
outcomes of decisions along with their probabilities -- for
example, answering the question: "What is the likelihood of
achieving a l,000,000 schilling profit in this alternative?"
In systems analysis, a decision maker is often concerned with
the probability that a project (the chosen alternative) cannot be
carried out with the time and money available. This risk of
failure may differ from alternative to alternative and should be
estimated as part of the analysis. (2) In another usage, risk
means an uncertain and strongly adverse impact, as in "the risks
of nuclear power plants to the population are..." In that case,
risk analysis or RISK assessment] is a study composed of two
parts, the first dealing with the identification of the strongly
adverse impacts, and the second with determination of their
respective probabilities. (IIASA)
The probability of failure. In decision making under uncertainty, risk analysis aims at minimising the failure to achieve a desired result, particularly when that result is influenced by factors not entirely under the decision maker's control (see game theory). (Krippendorff)
URL= http://cleamc11.vub.ac.be/ASC/RISK.html