Part C | 26.A
590 Part C Coastal Design
Table 26.2
(continued)
Source
Risk definition
Mathematical representation
References
Financial
Professions
Risk is the chance of loss with respect to person, liability, or the property of the insured or the possibility
that the actual return on an investment will be different
from its expected return. This includes such things as the
danger or probability of loss to an insurer, the amount
that an insurance company stands to lose, the variability
of returns from an investment, and the chance of nonpayment of a debt. Also often defined as the standard
deviation of the return on total investment or the degree
of uncertainty of return on an asset
In this formulation, the B
(outcome) is defined as the
deviation from an expectation. Note – this can be either
positive or negative (return can exceed expectation), but
the scenarios examined typically are only those which
will produce a negative impact. If we assume the expected return of an investment to be x,
the actual return
realized to be x
a , and the difference to be defined as
D
D
.x a
; x/,
then the risk financially if some event A
occurs is: R
D P.A/
P.DjA/
[26.106–113]
United
Nations
Risk is defined as the uncertainty that surrounds future
events and outcomes. It is an expression of the likelihood
and impact of an event with the potential to influence the
achievement of the organization’s objectives and goals.
Risks in the United Nations context are normally referred to as programmatic and operational areas that have
the greatest exposure to inefficiencies, ineffectiveness,
fraud, waste, abuse, and mismanagement
In this formulation, the only difference is that the specific
hazard
is pre-defined as inefficiencies, ineffectiveness,
fraud, waste, abuse, and mismanagement. Therefore,
the mathematical formulation remains the same: R
D
P.A/
P.BjA/
[26.114]
The ISO
31000 (2009)/
ISO Guide
73:2002
Risk is the effect of uncertainty on objectives. 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. This definition was
developed by an international committee representing
over 30 countries and is based on the input of several
thousand subject matter experts
This approach is closest to the financial professions in
that risk is measured with respect to a desired objective (an expected outcome in financial terms). Using
the same approach as financial risk, define the expected outcome as N
o;
the actual as o
a and the difference
D
D
.o a N
o/,
then the risk if some event A
occurs is:
R
D P.A/
P.DjA)
The only difference between this and
financial risk is that the event A
being analyzed explicitly
may cause o
a to increase (a positive result)
ISO31000:2009
Risk Management Standard [26.115]
590 Part C Coastal Design
Table 26.2
(continued)
Source
Risk definition
Mathematical representation
References
Financial
Professions
Risk is the chance of loss with respect to person, liability, or the property of the insured or the possibility
that the actual return on an investment will be different
from its expected return. This includes such things as the
danger or probability of loss to an insurer, the amount
that an insurance company stands to lose, the variability
of returns from an investment, and the chance of nonpayment of a debt. Also often defined as the standard
deviation of the return on total investment or the degree
of uncertainty of return on an asset
In this formulation, the B
(outcome) is defined as the
deviation from an expectation. Note – this can be either
positive or negative (return can exceed expectation), but
the scenarios examined typically are only those which
will produce a negative impact. If we assume the expected return of an investment to be x,
the actual return
realized to be x
a , and the difference to be defined as
D
D
.x a
; x/,
then the risk financially if some event A
occurs is: R
D P.A/
P.DjA/
[26.106–113]
United
Nations
Risk is defined as the uncertainty that surrounds future
events and outcomes. It is an expression of the likelihood
and impact of an event with the potential to influence the
achievement of the organization’s objectives and goals.
Risks in the United Nations context are normally referred to as programmatic and operational areas that have
the greatest exposure to inefficiencies, ineffectiveness,
fraud, waste, abuse, and mismanagement
In this formulation, the only difference is that the specific
hazard
is pre-defined as inefficiencies, ineffectiveness,
fraud, waste, abuse, and mismanagement. Therefore,
the mathematical formulation remains the same: R
D
P.A/
P.BjA/
[26.114]
The ISO
31000 (2009)/
ISO Guide
73:2002
Risk is the effect of uncertainty on objectives. 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. This definition was
developed by an international committee representing
over 30 countries and is based on the input of several
thousand subject matter experts
This approach is closest to the financial professions in
that risk is measured with respect to a desired objective (an expected outcome in financial terms). Using
the same approach as financial risk, define the expected outcome as N
o;
the actual as o
a and the difference
D
D
.o a N
o/,
then the risk if some event A
occurs is:
R
D P.A/
P.DjA)
The only difference between this and
financial risk is that the event A
being analyzed explicitly
may cause o
a to increase (a positive result)
ISO31000:2009
Risk Management Standard [26.115]