UK: (1) the possibility of adverse deviation from the predicted outcome of underwriting; (2) the peril or adverse contingency insured.
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US: (1) Uncertainty arising from the possible occurrence of given events. (2) The insured or the property to which an insurance policy relates.
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(i) Possibility of loss or exposure to loss, (ii) Probability or chance of loss, (iii) Peril which may cause loss, (iv) Hazard, or condition which increases the likely frequency or severity of loss. (v) Property or person exposed to loss, (vi) Potential rupee amount of loss. (vii) Variations in actual losses. (viii) Probability that actual losses will vary from expected losses. (ix) Psychological uncertainty concerning loss. (x) Concise Oxford Dictionary: Risk, hazard, chance of bad consequences, loss etc., ; exposure to mischance (xi) Chamber’s English Dictionary: Risk: hazard, danger, chance of loss or injury, the degree of probability of loss, a Person, thing or factor likely to cause loss or danger (xii) ISO 31000 – standard prescribed by the International Organization for Standardization defines “Risk” as the effect of uncertainty on objectives, whether positive or negative.
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MEDICAL, US: 1. Possibility that revenues of the insurance company will not be sufficient to cover expenditures incurred in delivery of medical services. 2. Probability of loss in a given population.
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UK: 1. The possibility or chance of harm, injury or damage. It is influenced by hazards present in a situation. Some definitions distinguish pure risks (the outcome is ‘loss or no change’) from speculative risks which range from ‘loss to gain. A distinction is also made between insurable and uninsurable risks. 2. A risk may also be the subjectmatter insured or the peril insured against. 3. An insurance company’s risk is uncertainty regarding the cost of a particular claim and depends on the underwriting risk and the timing risk or both. See RISK ANALYSIS.
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A term used to refer to the person, organization, or thing that is insured. This term can also be used to refer to the outcome of an event, which cannot be predicted, when more than one possible outcome exists.
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US: The chance of loss. Also used to refer to the insured or to property covered by a policy. (2) Any chance of loss. (3) A term used to refer to a person or the peril insured.
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This term may variously refer to – (a) the possibility of some event occurring which causes injury or loss; (b) the subject-matter of an insurance or reinsurance contract; or (c) an insured peril.
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Uncertainty concerning loss. Sometimes also used to refer to a piece of business or a submission to an insurer.

Systematic use of information to determine the probability of an occurrence and the severity of its consequences. This leads to informed decisions as to how particular risks should be managed. Risk mapping facilitates the process.

1. Collective reference to: risk identification, risk analysis and risk evaluation, i.e. an overall process in risk management. 2. Legal requirement under health and safety regulations. See MANAGEMENT OF HEALTH AND SAFETY AT WORK REGULATIONS 1999; COSHH.

An informed decision to accept the likelihood and consequences of a particular risk. This is planned risk assumption. A supermarket chain may choose to carry the risk of loss or damage to plate glass windows given that it has a spread of risk and the maximum possible loss is small relative to their resources. Deductibles and self-insurance are forms of risk assumption.

An attitude of an individual or organisation with a preference for avoiding risk whenever possible. A risk averter prefers a definite premium, even though it may exceed the loss expectancy, to unknown losses. If the loss expectancy’s monetary amount is £50, a risk averter will pay, say, £75 when the loss possibility range is £0-£5,000.

An informed decision not to become involved with, or continue with, a risk situation. The potential loss is regarded as greater than the potential value of the risk-creating activity, e.g. using PCBs in manufacturing processes, building on flood plains.
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Any measure which reduces to zero the probability of a loss from a given exposure may be property classified as risk avoidance. Risk avoidance may be achieved by either abandoning or never undertaking an asset or activity which involves the loss exposure being avoided. (By some authorities, risk avoidance is also called ‘risk elimination’ because risk avoidance eliminates entirely a given exposure to loss.)

Pensions term describing benefits that are not pre-funded and that are often insured on an annual basis, which usually means death or disability benefits.

Risk financing approach that allows a company to benefit from its own diversification across the different classes of risk, and over time through the use of captives or multiline, multi-year programmes.

Homogeneous groups of risks among whom the losses of the few can be distributed. There is no substantial advantage in two people combining to share each other’s losses, reciprocity excepted. It is only by large homogeneous groups combining through insurance that makes it possible to apply the law of large numbers. Risk combination is at the heart of insurance. The loss lighteth rather easily upon many than heavily upon few’ (Elizabethan Act 1601).

Implementation of risk treatment decisions. Individuals will be made responsible to see that the control measures are implemented and maintained in accordance with agreed timescales. Monitoring risk and their control measures is a vital part of an iterative process.
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Risk control measures attack risk by lowering the chance that a loss will occur or by reducing its severity if it does occur.