MANAGEMENT

Detailed explanation-1: -Uncertainty is the state, even partial, of deficiency of information related to understanding or knowledge of an event, its consequence, or likelihood.

Detailed explanation-2: -In the UK’s Orange Book, risk is defined as the “uncertainty of outcome, whether positive opportunity or negative threat, of actions and events”.

Detailed explanation-3: -Four primary sources of uncertainty in risk assessment and management can be identified: (1) uncertainties about definitions; (2) uncertainties about scientific facts; (3) uncertainties about risk perceptions and atti tudes; and (4) uncertainties about values.

Detailed explanation-4: -Risk is now defined as the “effect of uncertainty on objectives”, which focuses on the effect of incomplete knowledge of events or circumstances on an organization’s decision making.

Detailed explanation-5: -As per ISO 31000, risk is “The effect of uncertainty on objectives” whereas risk management is “coordinated activities to direct and control and organization with regard to risk".