Understanding Risk
The following table illustrates the different definitions of risk:
|
Source |
Risk defined as |
Keywords |
|
COSO-ERM |
Potential events that may impact the entity |
probability/impact |
|
Oxford Dictionary |
The probability of something happening multiplied by the resulting cost or benefit if it does |
probability/cost/benefit |
|
Business Dictionary |
A probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities and that may be avoided through preventive action |
probability/damage |
|
ISO 31000 |
The effect of uncertainty on objectives... |
