Risk refers to the condition under which
individuals can define a problem, specify the probability of certain events,
identify alternative solutions, and state the probability of each solution
leading to a result. Risk generally means that the problem and alternative
solutions fall somewhere between the extremes of being certain and being
unusual and ambiguous.

Probability is the percentage of times that a specific
result would occur if an individual were to make the same decision a large
number of times.

The two types of probability are: objective probability and
subjective probability.

Objective
probability is the likelihood that a specific result will occur, based on hard
facts and numbers.

Subjective
probability is the likelihood that a specific result will occur, based on
personal judgment.