Introduction
Risk is an inherent aspect of life affecting individuals, organisations, and societies. The potential for loss or harm from uncertain events or circumstances is defined. Risk can come in various forms, such as financial, environmental, social, technological, or geopolitical. To manage risk effectively, individuals and organisations need to understand its nature, identify potential risks, assess their likelihood and impact, and take steps to mitigate or avoid them.
Nature of Risk
A risk is an unpredictable event or circumstance that can have negative consequences. It can arise from internal and external factors and have short-term or long-term impacts.
The severity of risk can vary depending on its type, magnitude, and duration.
For example, financial troubles can result in monetary losses, while environmental risks can have catastrophic consequences for ecosystems and human health.
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