When you utilize the word of Risk in any reference, it shows the level of possibility which your action or activity may take you towards the outcome which is not favorable or undesirable for you. It is the main feature of the risk that it may be paid off or it may show no loss at all. Another possibility of that undesirable outcome is a gain rather than loss. On the other side of the coin, if you critically examine the term of uncertainty, you will come to know that it is the situation in which any action or matter is unpredictable that may show huge number of unknown possibilities. As a consequence, in a matter or action where the uncertainty is present, an immense number of unknown variables will be available resulting in not allowing any person to estimate or guess the probable outcome.
What is Risk?
Risk is essentially the level of possibility that an action or activity may guide to a loss or to an undesired outcome. From the dictionary point of view, risk means hazard or chance of loss of an action or situation. Moreover, the degree of probability of such loss can be premeditated as well. The characteristics of the risk will show you that it is measurable. You are able to show the risk in the quantities for which the priori grounds can be set or the calculation of the risk can be based on the empirical observation in addition. Because of these features, one is able to make arrangements in order to protect oneself next to the risk. The risk can be converted into certainty by efforts. The issues of risk can be minimized or even wiped away by the method of insurance and other arrangements.
What is Uncertainty?
It is the feature of the Uncertainty that it is well equipped with too many unknown variables which produce an endless or various sorts of lots of possible outcomes that are hard to work out. The possibility of measuring the Uncertainty is zero, and as a result, the uncertainty is not able to be quantified. This is the basic reason that the events of uncertainty are not handled through insurance or other arrangements. The circumstances of the Uncertainty are not able to be analyzed with the help of the priori grounds. The outcomes resulting from uncertainty are too irregular by nature, that can’t be planned through empirical observation due to the basic reason that these circumstances are only one of its kinds.
- Risk is able to be measured while the uncertainty is not able to be measured.
- Risk can be calculated while the uncertainty can never be counted.
- You are capable of make earlier plans in order to avoid risk. It is impossible to make prior plans for the uncertainty.
- Certain sorts of empirical observations can help to understand the risk but on the other hand, the uncertainty can never be based on empirical observations.
- After making efforts, the risk is able to be converted into certainty. On the contrary, you can’t convert the uncertainty into certainty.
- After making estimate of the risk factor, a decision can be made but as the calculation of the uncertainty is not possible, hence no decision can be made.