Risk

A risk is an uncertain event that matters. Matters in the sense that there is a consequence to the achievement of objectives. Traditionally, the consequence was a loss but more recently, standards organizations such as ISO and PMI have included opportunities or uncertain gains in their definition of risk. We prefer to reserve the term risk for uncertain losses and use the term opportunity for uncertain gains.

Given a probability distributions for the likelihood and impact (where impact is the product of consequence and , the expected value…

In order to compute the risk of an event,