What is Risk?
In a short sense, Risk is the possibility of loss, injury, or other adverse or unwelcome circumstance; a chance or situation involving such a possibility.
In other word, risk is the probable frequency and probable magnitude of future loss.
But in Financial sense, risk is often defined as the unexpected variability or volatility of returns and thus includes both potential worse-than-expected as well as better-than-expected returns. References to negative risk below should be read as applying to positive impacts or opportunity (e.g., for "loss" read "loss or gain") unless the context precludes this interpretation.
