Tashkent institute of finance department «state finance» presentation on the discipline “Finance” on the Theme


● Tasks to strengthen and control the degree of acquisition of knowledge



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Theme 2.17

● Tasks to strengthen and control the degree of acquisition of knowledge

Tests

We begin by identifying the differences between uncertainty and risk.


Theme 2.17. «Finance and risks»

Uncertainty and risk

Copyright © 2020 Ye. А. Akhunova
  • We begin by identifying the differences between uncertainty and risk.
  • Uncertainty is spoken of when it is impossible to predict for sure what will happen in the future.
  • Risk is not just uncertainty, but one that must be taken into account when performing certain actions, since it can affect the material well-being of people.
  • Thus, uncertainty is a necessary but not sufficient condition for risk. Each risky situation is uncertain, although uncertainty can exist without risk.
  • To illustrate these considerations, imagine that you plan to have a party and invite a dozen of your friends. Most likely, 10-12 people will come, but there is uncertainty - all 12 may appear, or maybe only 8.
  • The risk exists only if the uncertainty can affect your plans for the party.
  • Will a completely accurate forecast of the number of guests change your actions?
  • If not, there is uncertainty, but no risk.


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