Generally understand a possibility of approach of some unfavorable event involving different losses as risk (for example, receiving a physical injury, an inventory loss, income generation is lower than the expected level, etc.).
Business activity contains a certain share of risk which the entrepreneur has to undertake, having defined character and scales of this risk. Thus, implementation of business activity in any kind is connected with risk.
In business activity it is accepted to understand as "risk" the probability (threat) of loss by the enterprise of a part of the resources, short-receptions of income or emergence of additional expenses as a result of implementation of certain productive and financial activities.
Or the risk is the activity connected with overcoming uncertainty of situations of the inevitable choice in the course of which there is an opportunity quantitatively and to qualitatively estimate the probability of achievement of expected result, failure and a deviation from the purpose.
In the phenomenon "risk" can be marked out the following elements which interrelation is its essence:
- a possibility of a deviation from the expected purpose for the sake of which the chosen alternative was performed;
- probability of achievement of desirable result;
- lack of confidence in achievement of an effective objective;
- an opportunity material, moral, etc. the losses connected with implementation of the alternative chosen in the conditions of uncertainty.