What is a Risk?

Risk can be defined as the probability of an event or situation occurring that could harm an organization’s objectives. It is the possibility of an event or action resulting in a loss or failure to achieve a desired outcome. Risks can come from various sources such as internal factors like operational processes, and human errors, or external factors like economic conditions, market volatility, or natural disasters. Identifying and managing risks is an essential part of effective decision-making and is critical for ensuring an organization’s long-term success.