Uncertainty and risk

Let us first define what we mean by uncertainty and risk.

• Uncertainty: a lack of sureness about something; state of not knowing definitely.

Uncertainty relates to a situation in which one does not know what could be expected. For instance, in Open Design: not knowing a priori which stakeholders and associated constraints will be crucial for a positive solution space and how stubborn or lenient they will be in the negotiations. Uncertainty, therefore, pertains to the relevance a parameter may or may not have.

• Risk: the possibility of loss or damage; probability of such loss.

Risk relates to a situation in which one knows what to anticipate and one can estimate the probability of it becoming reality. For instance, in Open Design: the risk that actual cost of the project will be higher than assumed in the LP calculations. Such probabilities can be taken into account in calculations, hence the expression a calculated risk. Risk, therefore, pertains to the values a parameter may have in a particular situation.

Best Investment Tips and Ideas

Best Investment Tips and Ideas

The dynamics of investing can be very emotional and stressful if not properly managed. When you are aware of what is all involved you give yourself the power to avoid those situations or at least manage them effectively. That will make your investments more exciting, rewarding, and enjoyable. Those positive factors will only lead to greater success in all that achieve with investments and life.

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