Difference between Risk and Uncertainty

The difference between Risk and Uncertainty are as follows:

Risk

  1. Definition: Risk can be defined as the chance that some unfavorable events will occur.
  2. Probability distribution: Risk refers to a set of unique outcomes for a given event which can be assigned probabilities.
  3. From: Risk is formed by information with a probability distribution.
  4. Measure: Measured by a statistical concept.
  5. Tools: Measurement tools are standard deviation and variance.
  6. Income: Risk is related to income.
  7. Avoidance: Risk is avoidable.
  8. Insurance: By insurance, it can be.
  9. Control: It can be controlled
  10. Risk Mgt: Risk Mgt. is required to avoid it.

Uncertainty

  1. Definition: If no information is available to formulate the probability distribution of the situation is known as.
  2. Probability distribution: Probabilities cannot be assigned in case of uncertainty.
  3. From: It is formed by no information with probability.
  4. Measure: It cannot be measured.
  5. Tools: There is no tool for measurement.
  6. Income: It is related to income.
  7. Avoidance: It is unavoidable.
  8. Insurance: It is no insurable.
  9. Control: It is not controllable.
  10. Risk Mgt: Risk management is not.

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