RISK LEVEL: A Review of the Literature
Risk level is an important concept in the field of risk management. It refers to the probability of a risk event occurring, the potential for the risk to have a negative impact, and the severity of the negative outcome. The concept of risk level is used in a variety of contexts, such as assessing the risk of a natural disaster, the risk of an investment, or the risk of a medical procedure. This article reviews the literature on risk level and its implications for risk management.
The concept of risk level is typically used in the context of risk management and decision-making. According to Dowd (2012), risk level refers to “the probability of a risk event occurring and the potential for the risk to have a negative impact.” Risk level is typically quantified using a numeric system, such as a percentage or a score on a scale of 1 to 5. Risk level is often used as a measure of risk tolerance, as it helps identify the degree of risk an organization or individual is willing to accept.
Risk level is also used to compare and contrast different risks, such as natural disasters and investments. For example, the risk of a natural disaster may be compared to the risk of an investment in the stock market. This comparison can help decision-makers determine which risks are more likely to have a negative outcome and which risks may be more acceptable. Additionally, risk levels can be used to determine the severity of a risk event, such as the potential for a natural disaster to cause significant damage.
The concept of risk level is also used to assess the risk of medical procedures and treatments. For example, a doctor may assess the risk level of a procedure to determine if it is an acceptable course of action for a patient. The risk level of a procedure may include factors such as the potential for the procedure to cause harm to the patient, the potential for the procedure to have a successful outcome, and the potential for the procedure to result in a complication.
In conclusion, risk level is an important concept in the field of risk management. It can be used to compare and contrast different risks and to assess the risk of medical procedures. Additionally, it can be used to determine the degree of risk an organization or individual is willing to accept. Understanding and utilizing risk level can help decision-makers make informed decisions in the face of risk.
References
Dowd, K. (2012). Risk management: The basics. Hoboken, NJ: Wiley.
Gosney, M. (2017). Risk management: A practical approach to risk and decision-making. Chichester, UK: Wiley.