Them. This definition distinguishes risk from uncertainty, in which the probabilities are unknown

A gambler, for example, faces risk because he could either be very much richer tomorrow than he is

Today or (more likely) slightly poorer, depending on whether a roulette wheel spins the ball into the

Right hole — and he knows the odds of the roulette wheel.

It is normally assumed that economic agents dislike risk (risk aversion) and in the market for

Financial assets the riskier an asset, the higher the expected return investors will require of it. Risk

Assessment has been promoted as a means of preventing economic activity which creates more

Dangers than are reasonable. But perhaps more importantly, it can prevent the error of creating

"too much safety” — the imposition of costly safety mechanisms that reduce risks less than is

Worthwhile, given the cost. Economists argue that it is not worth investing millions of pounds (or

Dollars) in, say, a rail safety system, if it is expected to save one life a year, if the money could have

Saved more lives when invested elsewhere.

The level of competition, the stage of economic development of the market and many other

Factors are of great significance.

The market value and the quantity (volume) of the output of goods, the dynamics of the production

Changes in the main producing countries are given a lot of heed in determining the economic