Legal Definitions - risk

Definition: Risk refers to the chance or possibility of an unfavorable event happening, which could lead to a loss or harm.

Examples:

• Investing in the stock market involves a certain level of risk. There is a chance that the value of your investment could decrease, resulting in a financial loss.
• Driving a car comes with the risk of getting into an accident, which could cause physical harm or damage to your vehicle.
• Starting a new business involves taking on the risk of failure, which could result in financial loss and potentially harm your reputation.

These examples illustrate how risk involves the possibility of negative consequences. In each case, there is a chance that something could go wrong, resulting in a loss or harm. It's important to be aware of the risks involved in any decision or action and take steps to mitigate them.