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The latter is used in measuring risk during the extreme market stress conditions. In Novak [26] "risk is a possibility of an undesirable event".

In financial markets, one may need to measure credit risk , information timing and source risk, probability model risk, operational risk and legal risk if there are regulatory or civil actions taken as a result of " investor's regret ".

With the advent of automation in financial markets, the concept of "real-time risk" has gained a lot of attention.

Aldridge and Krawciw [27] define real-time risk as the probability of instantaneous or near-instantaneous loss, and can be due to flash crashes, other market crises, malicious activity by selected market participants and other events.

Regulators have taken notice of real-time risk as well. Basel III [29] requires real-time risk management framework for bank stability.

Some people may be " risk seeking ", i. Such an individual willingly pays a premium to assume risk e. The financial audit risk model expresses the risk of an auditor providing an inappropriate opinion or material misstatement of a commercial entity's financial statements.

It can be analytically expressed as. As defined, audit risk does not consider the impact of an auditor misstatement and so is stated as a simple probability.

The impact of misstatement must be considered when determining an acceptable audit risk. Security risk management involves protection of assets from harm caused by deliberate acts.

A more detailed definition is: Compromise of organizational assets may adversely affect the enterprise, its business units and their clients.

As such, consideration of security risk is a vital component of risk management. One of the growing areas of focus in risk management is the field of human factors where behavioural and organizational psychology underpin our understanding of risk based decision making.

This field considers questions such as "how do we make risk based decisions? In decision theory , regret and anticipation of regret can play a significant part in decision-making, distinct from risk aversion [32] [33] preferring the status quo in case one becomes worse off.

Framing [34] is a fundamental problem with all forms of risk assessment. In particular, because of bounded rationality our brains get overloaded, so we take mental shortcuts , the risk of extreme events is discounted because the probability is too low to evaluate intuitively.

As an example, one of the leading causes of death is road accidents caused by drunk driving — partly because any given driver frames the problem by largely or totally ignoring the risk of a serious or fatal accident.

For instance, an extremely disturbing event an attack by hijacking, or moral hazards may be ignored in analysis despite the fact it has occurred and has a nonzero probability.

Or, an event that everyone agrees is inevitable may be ruled out of analysis due to greed or an unwillingness to admit that it is believed to be inevitable.

These human tendencies for error and wishful thinking often affect even the most rigorous applications of the scientific method and are a major concern of the philosophy of science.

All decision-making under uncertainty must consider cognitive bias , cultural bias , and notational bias: No group of people assessing risk is immune to " groupthink ": Framing involves other information that affects the outcome of a risky decision.

The right prefrontal cortex has been shown to take a more global perspective [35] while greater left prefrontal activity relates to local or focal processing.

From the Theory of Leaky Modules [37] McElroy and Seta proposed that they could predictably alter the framing effect by the selective manipulation of regional prefrontal activity with finger tapping or monaural listening.

Rightward tapping or listening had the effect of narrowing attention such that the frame was ignored.

This is a practical way of manipulating regional cortical activation to affect risky decisions, especially because directed tapping or listening is easily done.

A growing area of research has been to examine various psychological aspects of risk taking. Researchers typically run randomised experiments with a treatment and control group to ascertain the effect of different psychological factors that may be associated with risk taking.

Thus, positive and negative feedback about past risk taking can affect future risk taking. In an experiment, people who were led to believe they are very competent at decision making saw more opportunities in a risky choice and took more risks, while those led to believe they were not very competent saw more threats and took fewer risks.

The concept of risk-based maintenance is an advanced form of Reliability centred maintenance. In case of chemical industries, apart from probability of failure, consequences of failure is also very important.

Therefore, the selection of maintenance policies should be based on risk, instead of reliability. Risk-based maintenance methodology acts as a tool for maintenance planning and decision making to reduce the probability of failure and its consequences.

In risk-based maintenance decision making, the maintenance resources can be used optimally based on the risk class high, medium, or low of equipment or machines, to achieve tolerable risk criteria.

Closely related to information assurance and security risk, cybersecurity is the application of system security engineering [42] in order to address the compromise of company cyber-assets required for business or mission purposes.

In order to address cyber-risk, cybersecurity applies security to the supply chain, the design and production environment for a product or service, and the product itself in order to provide efficient and appropriate security commensurate with the value of the asset to the mission or business process.

Since risk assessment and management is essential in security management, both are tightly related. Security assessment methodologies like CRAMM contain risk assessment modules as an important part of the first steps of the methodology.

On the other hand, risk assessment methodologies like Mehari evolved to become security assessment methodologies.

Often the probability of a negative event is estimated by using the frequency of past similar events. Probabilities for rare failures may be difficult to estimate.

This makes risk assessment difficult in hazardous industries, for example nuclear energy, where the frequency of failures is rare, while harmful consequences of failure are severe.

Statistical methods may also require the use of a cost function , which in turn may require the calculation of the cost of loss of a human life.

This is a difficult problem. One approach is to ask what people are willing to pay to insure against death [43] or radiological release e. GBq of radio-iodine , [ citation needed ] but as the answers depend very strongly on the circumstances it is not clear that this approach is effective.

Risk is often measured as the expected value of an undesirable outcome. This combines the probabilities of various possible events and some assessment of the corresponding harm into a single value.

See also Expected utility. The simplest case is a binary possibility of Accident or No accident. The associated formula for calculating risk is then:.

For example, if performing activity X has a probability of 0. Situations are sometimes more complex than the simple binary possibility case.

In a situation with several possible accidents, total risk is the sum of the risks for each different accident, provided that the outcomes are comparable:.

One of the first major uses of this concept was for the planning of the Delta Works in , a flood protection program in the Netherlands , with the aid of the mathematician David van Dantzig.

In statistical decision theory, the risk function is defined as the expected value of a given loss function as a function of the decision rule used to make decisions in the face of uncertainty.

People may rely on their fear and hesitation to keep them out of the most profoundly unknown circumstances.

Fear is a response to perceived danger. Risk could be said to be the way we collectively measure and share this "true fear"—a fusion of rational doubt, irrational fear, and a set of unquantified biases from our own experience.

The field of behavioural finance focuses on human risk-aversion, asymmetric regret, and other ways that human financial behaviour varies from what analysts call "rational".

Risk in that case is the degree of uncertainty associated with a return on an asset. Recognizing and respecting the irrational influences on human decision making may do much to reduce disasters caused by naive risk assessments that presume rationality but in fact merely fuse many shared biases.

According to one set of definitions, fear is a fleeting emotion ascribed to a particular object, while anxiety is a trait of fear this is referring to "trait anxiety", as distinct from how the term "anxiety" is generally used that lasts longer and is not attributed to a specific stimulus these particular definitions are not used by all authors cited on this page.

Positive emotions, such as happiness, are believed to have more optimistic risk assessments and negative emotions, such as anger, have pessimistic risk assessments.

As an emotion with a negative valence, fear, and therefore anxiety, has long been associated with negative risk perceptions.

Under the more recent appraisal tendency framework of Jennifer Lerner et al. Psychologists have demonstrated that increases in anxiety and increases in risk perception are related and people who are habituated to anxiety experience this awareness of risk more intensely than normal individuals.

This is referred to as affect-as-information according to Clore, However, the accuracy of these risk perceptions when making choices is not known.

Experimental studies show that brief surges in anxiety are correlated with surges in general risk perception. This notion is supported by an experiment that engages physicians in a simulated perilous surgical procedure.

It was demonstrated that a measurable amount of the participants' anxiety about patient outcomes was related to previous experimentally created regret and worry and ultimately caused the physicians to be led by their feelings over any information or guidelines provided during the mock surgery.

Additionally, their emotional levels, adjusted along with the simulated patient status, suggest that anxiety level and the respective decision made are correlated with the type of bad outcome that was experienced in the earlier part of the experiment.

When experiencing anxiety, individuals draw from personal judgments referred to as pessimistic outcome appraisals. These emotions promote biases for risk avoidance and promote risk tolerance in decision-making.

It is common for people to dread some risks but not others: They tend to be very afraid of epidemic diseases, nuclear power plant failures, and plane accidents but are relatively unconcerned about some highly frequent and deadly events, such as traffic crashes, household accidents, and medical errors.

One key distinction of dreadful risks seems to be their potential for catastrophic consequences, [52] threatening to kill a large number of people within a short period of time.

Different hypotheses have been proposed to explain why people fear dread risks. First, the psychometric paradigm [52] suggests that high lack of control, high catastrophic potential, and severe consequences account for the increased risk perception and anxiety associated with dread risks.

Second, because people estimate the frequency of a risk by recalling instances of its occurrence from their social circle or the media, they may overvalue relatively rare but dramatic risks because of their overpresence and undervalue frequent, less dramatic risks.

Indeed, research found [58] that people's fear peaks for risks killing around people but does not increase if larger groups are killed.

Fourth, fearing dread risks can be an ecologically rational strategy. Accordingly, people are more concerned about risks killing younger, and hence more fertile, groups.

The relationship between higher levels of risk perception and "judgmental accuracy" in anxious individuals remains unclear Joseph I. There is a chance that "judgmental accuracy" is correlated with heightened anxiety.

Constans conducted a study to examine how worry propensity and current mood and trait anxiety might influence college student's estimation of their performance on an upcoming exam, and the study found that worry propensity predicted subjective risk bias errors in their risk assessments , even after variance attributable to current mood and trait anxiety had been removed.

In his seminal work Risk, Uncertainty, and Profit , Frank Knight established the distinction between risk and uncertainty.

Uncertainty must be taken in a sense radically distinct from the familiar notion of Risk, from which it has never been properly separated. The term "risk," as loosely used in everyday speech and in economic discussion, really covers two things which, functionally at least, in their causal relations to the phenomena of economic organization, are categorically different.

The essential fact is that "risk" means in some cases a quantity susceptible of measurement, while at other times it is something distinctly not of this character; and there are far-reaching and crucial differences in the bearings of the phenomenon depending on which of the two is really present and operating.

It will appear that a measurable uncertainty, or "risk" proper, as we shall use the term, is so far different from an unmeasurable one that it is not in effect an uncertainty at all.

Thus, Knightian uncertainty is immeasurable, not possible to calculate, while in the Knightian sense risk is measurable.

Another distinction between risk and uncertainty is proposed by Douglas Hubbard: In this sense, one may have uncertainty without risk but not risk without uncertainty.

We can be uncertain about the winner of a contest, but unless we have some personal stake in it, we have no risk. If we bet money on the outcome of the contest, then we have a risk.

In both cases there are more than one outcome. The measure of uncertainty refers only to the probabilities assigned to outcomes, while the measure of risk requires both probabilities for outcomes and losses quantified for outcomes.

The terms risk attitude , appetite , and tolerance are often used similarly to describe an organisation's or individual's attitude towards risk-taking.

One's attitude may be described as risk-averse , risk-neutral , or risk-seeking. There can still be deviations that are within a risk appetite. For example, recent research finds that insured individuals are significantly likely to divest from risky asset holdings in response to a decline in health, controlling for variables such as income, age, and out-of-pocket medical expenses.

Gambling is a risk-increasing investment, wherein money on hand is risked for a possible large return, but with the possibility of losing it all.

Purchasing a lottery ticket is a very risky investment with a high chance of no return and a small chance of a very high return.

In contrast, putting money in a bank at a defined rate of interest is a risk-averse action that gives a guaranteed return of a small gain and precludes other investments with possibly higher gain.

The possibility of getting no return on an investment is also known as the rate of ruin. Hubbard also argues that defining risk as the product of impact and probability presumes, unrealistically, that decision-makers are risk-neutral.

However, most decision-makers are not actually risk-neutral and would not consider these equivalent choices. This gave rise to prospect theory and cumulative prospect theory.

Hubbard proposes to instead describe risk as a vector quantity that distinguishes the probability and magnitude of a risk.

Risks are simply described as a set or function [ vague ] of possible payoffs gains or losses with their associated probabilities.

This array is collapsed into a scalar value according to a decision-maker's risk tolerance. From Wikipedia, the free encyclopedia.

Look up risk in Wiktionary, the free dictionary. For other uses, see Risk disambiguation. An automated process has detected links on this page on the local or global blacklist.

If the links are appropriate you may request whitelisting by following these instructions ; otherwise consider removing or replacing them with more appropriate links.

To hide this tag, set the "invisible" field to "true" List of blacklisted links: Information assurance and Information security.

Decision theory and Prospect theory. Risk assessment and Operational risk management. Retrieved 12 December The Stanford Encyclopedia of Philosophy.

Retrieved 9 May Oxford English Dictionary 3rd ed. Subscription or UK public library membership required. The Quest for Ascendant Quality.

J Epidemiol Community Health. Risk avser möjligheten för skadliga konsekvenser som uppkommer av, till tidpunkt och utsträckning eller utformning okända, framtida händelser.

Motsatsen, de gynnsamma konsekvenserna, kallas ofta chans. Det anses finnas ett behov av att närmare precisera betydelsen av begreppet risk.

Riskbedömningar görs för att utröna olika typer av händelser. En typ av riskanalys är den sk SWOT-analysen. Riskneutralitet innebär att val är lika värda.

Risk och fara skall inte förväxlas. En fara är en potentiellt förstörande händelse. En risk är sannolikheten att faran skall inträffa eller konsekvenserna om faran skulle inträffa, eller en sammanvägning av sannolikheten och konsekvenserna.

Uppsidan anges hos dem som en möjlighet till lönsamma affärer. Riskerna kan gälla utfall i spelet eller vem som vinner och vad spelaren vinner.

En risk en spelare löper - förutom riskerna i spelet, är att en motspelare fuskar. Inom national- och företagsekonomi är risk sannolikheten för skadliga händelser multiplicerat med den genomsnittliga skadan av dem.

En hög volatilitet anses bidra till ökad risk. Kumulativ utsikts teori Eng. För att undslippa vissa typer av stokastisk dominans att vissa val, felaktigt ofta, ses som korrekta.

Matematisk statistik sysslar bland annat med att bedöma utfall. Risque d'Audit är risken att ett fel har befunnits i en räkenskap.

Säkerhetsteknik är teknik som ökar säkerheten.

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A player using this strategy might remain in the game all the way to later stages and then mount an attack on the weakest player and start a chain elimination to remove one player after another to win the game.

The term was popularised in real-time strategy games where a player creates a defensive perimeter or a turtle shell around the base of operations.

Solutions to counteract this strategy using cooperation have been proposed. The rules of Risk neither endorse nor prohibit alliances or truces.

Thus players often form unofficial treaties for various reasons, such as safeguarding themselves from attacks on one border while they concentrate their forces elsewhere, or eliminating a player who has grown too strong.

Because these agreements are not enforceable by the rules, these agreements are often broken. Some players allow trading of Risk cards, but only during their turn.

This optional rule makes alliances more powerful. Capturing a territory depends on the number of attacking and defending armies and the associated probabilities.

In a battle to completion, a player who has more armies even just one more has a significant advantage, whether on attack or defence the number of attacking armies does not include the minimum one army that must be left behind in the territory.

Defenders always win ties when dice are rolled. This gives the defending player the advantage in "one-on-one" fights, but the attacker's ability to use more dice offsets this advantage.

It is always advantageous to roll the maximum number of dice, unless an attacker wishes to avoid moving men into a 'dead-end' territory, in which case they may choose to roll fewer than three.

Thus when rolling three dice against two, three against one, or two against one, the attacker has a slight advantage, otherwise the defender has an advantage.

There are online tools available to compute the outcome of whole campaigns i. This variation dramatically shifts the balance of power towards defence.

In addition to the original version of , and a 40th Anniversary Edition with metal pieces, a number of official variants of Risk have been released over the years.

In recent years, Hasbro has predominantly based its Risk variants on popular films. In chronological order, the variations of Risk that have been released are:.

Many variants exist that are based on the original concept of the game of Risk and that contain much of the functionality of the original, but are not licensed by Hasbro, such as, for example, the video games Global Domination and Lux.

Known as Risk clones, such variants have names not containing the term " Risk " to avoid legal issues. NarcoGuerra is a newsgame based on the basic Risk rules, played out over a map of Mexico with the intent of educating people on the Mexican Drug War.

In addition to Risk clones, third-party products have been created which slightly modify traditional gameplay. Among the most popular third-party editions are virtual dice-rolling simulators.

These can act as virtual replacements to traditional dice or be used to automatically simulate the results of large battles between territories—significantly speeding up gameplay during battles between territories with many units.

Several video game versions of Risk have been released as Risk , starting with the Commodore 64 edition in [23] and the Macintosh edition in In Hasbro Interactive released a PC version of Risk that included a new variation on the game called Ultimate Risk , which did not use dice but rather implemented the use of forts, generals, and complex battle strategies.

Risk II for PC and Mac was released as a video game which includes classic Risk as well as board and gameplay variations. Factions was released on June 23, It includes classic Risk as well as a factions mode where players can play as Zombies, Robots, Cats, Soldiers, or Yetis.

A licensed iOS app, Risk: A maximum of six players can participate. If only one iOS device is available, the "pass and play" mode allows several players to take part in a multi-player game.

A licensed version of the game is also available for Android devices which includes online play, device sharing, and single player versus computer modes.

From Wikipedia, the free encyclopedia. This is the latest accepted revision , reviewed on 24 October This article needs additional citations for verification.

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Subsequent editions restored the missing route. List of licensed Risk game boards. Rules of Play" PDF. Retrieved 12 May The Evolution of a Game".

Archived from the original on 19 February Retrieved 12 March Retrieved 24 May The Art of Winning Risk.

Archived from the original on 24 November Retrieved 12 December Archived from the original on Retrieved July 25, Risk Black Ops and Hasbro's wrong direction".

Retrieved 18 January Retrieved October 27, Star Wars Edition Game". Star Wars Edition Black Series vs. Standard - Drive Thru Review". Blekinge Institute of Technology.

Chronology of the Commodore 64 Computer. Archived from the original on July 9, Micronauts Mighty Muggs Mr. Are You Smarter than a 5th Grader?

Nerf Playskool Tiger Electronics Tonka. Hasbro Universe Fun Publications. Retrieved from " https: All articles with dead external links Articles with dead external links from June Wikipedia pending changes protected pages Articles needing additional references from January All articles needing additional references Pages using infobox game with unknown parameters All articles with unsourced statements Articles with unsourced statements from January All articles with specifically marked weasel-worded phrases Articles with specifically marked weasel-worded phrases from September Articles with unsourced statements from July Official website different in Wikidata and Wikipedia.

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Your browser does not support iframes. Secret in the Shadows. Battle for world domination with every roll of the dice in Risk! Acquire The game of Risk starts with players taking turns selecting, or acquiring, a territory until all territories have been claimed.

Once all territories have been claimed, the Deployment Phase begins. Deploy In the deployment phase, players place their remaining units on territories they occupy.

Deployment is done one army per turn and ends when the last player has placed his last army. Attack Take turns with other players as you receive reinforcements, attack and ultimately capture your opponents' territories.

Fortify Don't forget to strengthen your defenses and fortify your territories! Doing so will help you take control of the entire map.

Chess 50 Now Playing! No Limit Hold'em Now Playing! Phlinx Now Playing! At the start of each game you will choose your color then acquire and deploy your armies.

Next, you will take turns with the other players as you receive reinforcements, attack, and fortify your defenses. Capturing one or more territories will earn you a territory card.

When you collect three identical or three different territory cards you may cash them in for bonus armies.

Capturing and controlling territories and continents also award bonus armies each turn. Capturing territories comes during your Attack Phase, where you eliminate occupying opponent armies through a series of simulated dice rolls.

The odds of victory are typically obvious the army with the most units will usually win , but luck of the dice can reduce a sure victory into a shocking defeat.

The element of "risk" is ever present! Your game ends when you have control of the entire map the default global domination rules , control 24 territories an optional rule , you run out of turns and victor is declared based on a combination of armies, territories, and territory cards , or you are eliminated.

Good luck and have fun!

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