Risk Calculation

Risk calculation is the process of evaluating the likelihood of an event occurring and its potential impact. It involves identifying hazards, assessing how often they might happen (probability), and estimating the consequences if they do. For example, in health, it could mean understanding the risk of a disease based on lifestyle factors. By quantifying these elements, individuals and organizations can make informed decisions to minimize negative outcomes, whether that involves safety measures, financial investments, or health practices. It’s essentially about balancing potential benefits against possible dangers to make smarter choices.