MANAGEMENT

Detailed explanation-1: -Event risk something that has not yet happened & it may not happen at all, but if it does happen then it has an impact on one or more objectives. As a taken example, when you go for a photo-shoot, it may rain or may not. But if it rains you are prepared. This is known as Event Risk.

Detailed explanation-2: -Variability risks, also called “aleatoric uncertainty” are those in which some aspect of a planned situation is uncertain. ”The name is taken from the Latin word alea, which is a game of chance with dice where there are a set number of possible outcomes but we don’t know which one will actually occur.”

Detailed explanation-3: -An uncertain event is an event that may or may not happen. In flipping a coin once, an uncertain event would be getting a head.

Detailed explanation-4: -When the event is uncertain, then the possibility of failure is very high while the managerial control over the event is very low. Managers, for example, have a very low control over a Tsunami hitting their factory near the coast, which normally happens once in 150 years. Risk is in between these two extremes.

Detailed explanation-5: -Risk is when the probabilities of the possible outcomes are known (such as when tossing a coin or throwing a dice); uncertainty is where the randomness of outcomes cannot be expressed in terms of specific probabilities.