ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Risk: A state of uncertainty where some of the possibilities involve a loss, catastrophe, or other undesirable outcome. Measurement of risk: A set of possibilities each with quantified probabilities and quantified losses.

Detailed explanation-2: -Risk traditionally has been defined in terms of uncertainty. Based on this concept, risk is defined as uncertainty concerning the occurrence of a loss. For example, the risk of being killed in an auto accident is present because uncertainty is present.

Detailed explanation-3: -Risk Versus Uncertainty. Risk, as it is generally understood by health and safety risk analysts, measures the probability and severity of loss or injury. Uncertainty, on the other hand, refers to a lack of definite knowledge, a lack of sureness; doubt is its closest synonym. At times, these terms are confused.

Detailed explanation-4: -Uncertainty of loss means a measure of the nature and the extent of the variability of actual losses for a group of individuals or risks from the mean anticipated loss for the group and includes other similar measures of risk.

Detailed explanation-5: -Definition: Risk implies future uncertainty about deviation from expected earnings or expected outcome. Risk measures the uncertainty that an investor is willing to take to realize a gain from an investment. Description: Risks are of different types and originate from different situations.