Through a combination of luck and robust aircraft design, only 2 people were killed; a surprising outcome given the photos of the wreckage. Unfortunately, many more were injured, a number in serious or critical condition.
It defines risk as: Exposure to the possibility of loss, injury, or other adverse or unwelcome circumstance; a chance or situation involving such a possibility.
This definition, using project terminology, is easily made universal by removing references to projects. The possibility that an actual return on an investment will be lower than the expected return.
A situation where the probability of a variable such as burning down of a building is known but when a mode of occurrence or the actual value of the occurrence whether the fire will occur at a particular property is not.
The probability of a loss or drop in value.
Trading risk is divided into two general categories: Also called market risk. Also called non-market risk, extra-market risk or diversifiable risk. Product of the consequence and probability of a hazardous event or phenomenon.
For example, the risk of developing cancer is estimated as the incremental probability of developing cancer over a lifetime as a result of exposure to potential carcinogens cancer-causing substances. In this definition, uncertainties include events which may or may not happen and uncertainties caused by ambiguity or a lack of information.
It also includes both negative and positive impacts on objectives. Many definitions of risk exist in common usage, however this definition was developed by an international committee representing over 30 countries and is based on the input of several thousand subject matter experts.
Other[ edit ] Very different approaches to risk management are taken in different fields, e.
Risk can be seen as relating to the probability of uncertain future events. In computer science this definition is used by The Open Group. References to negative risk below should be read as also applying to positive impacts or opportunity e.
The related terms " threat " and " hazard " are often used to mean something that could cause harm. Practice areas[ edit ] Risk is ubiquitous in all areas of life and risk management is something that we all must do, whether we are managing a major organisation or simply crossing the road.
When describing risk however, it is convenient to consider that risk practitioners operate in some specific practice areas. Economic risk[ edit ] Economic risks can be manifested in lower incomes or higher expenditures than expected.
The causes can be many, for instance, the hike in the price for raw materials, the lapsing of deadlines for construction of a new operating facility, disruptions in a production process, emergence of a serious competitor on the market, the loss of key personnel, the change of a political regime, or natural disasters.Loss Causation Model BY ds “Loss Causation Model” History, Theory & Application Before a loss occurs (Injury, illness, damage, loss in process), there are series of events that take place with a root cause that begins this series of events.
Heinrich’s domino model of accident causation Herbert W. Heinrich was a pioneering occupational safety researcher, whose publication Industrial Accident Prevention: A Scientific Approach [Heinrich ] was based on the analysis of large amounts of accident data collected by his employer, a large insurance company.
Market Impact, Loss Causation and Multiple Regression Modeling - The Importance of Modular Theories of Damage Causation in Antitrust Class Certification Motion Practice after Comcast v.
Reproduced with permission of 18 Journal of Law and Commerce (Fall ) Measuring Commercial Damages via Lost Profits or Loss of Business Value: Are these Measures Redundant or Distinguishable?
The modern causation model does a better job of depicting the causes of accidents. It is a little more complicated than Heinrich's model, but with it we can demonstrate that it does a lot more in helping to.
Even though most pregnancies are problem-free, some pregnancies end in loss. Even though most pregnancies are problem-free, it is estimated that one in four pregnancies ends in loss.