Risk has several meanings in different contexts within statistics

Risk has several meanings in different contexts within statistics and is often used in combination with other terms, such as Bayes risk.

According to Everitt & Skrondal (2002), risk is a term often used in medicine for the probability that an event will occur, for example, that a person will become ill, will die, etc. In decision theory, risk describes a situation in which an agent is facing a random variable with known outcomes and their probabilities (Luce & Raiffa, 1958) or either known or unknown probabilities that exist and can be estimated or somehow else arrived at (Knight, 1921).

References:

  • Everitt, B., & Skrondal, A. (2002). The Cambridge Dictionary of Statistics (Vol. 106). Cambridge: Cambridge University Press.
  • Knight, F. H. (1921). Risk, uncertainty and profit (Vol. 31). Houghton Mifflin.
  • Luce, R. D., & Raiffa, H. (1958). Games and Decisions: Introduction and Critical Survey. New York: Wiley.