risky adj
1. involving risk or danger; "skydiving is a hazardous sport"; "extremely risky going out in the tide and fog"; "a venturesome journey in wintertime"; "a venturous enterprise" [syn: hazardous, venturesome, venturous]
2. not financially safe or secure; "a bad investment"; "high risk investments"; "anything that promises to pay too much can't help being risky"; "speculative business enterprises" [syn: bad, insecure, high-risk, speculative] [also: riskiest, riskier]

Risky \Risk"y\, a. Attended with risk or danger; hazardous. ``A risky matter.'' --W. Collins. Generalization are always risky. --Lowell.

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Risk is the potential that a chosen action or activity (including the choice of inaction) will lead to a loss (an undesirable outcome). The notion implies that a choice having an influence on the outcome exists (or existed). Potential losses themselves may also be called "risks". Almost any human endeavour carries some risk, but some are much more risky then others.

For the sociologist Niklas Luhmann the term 'risk' is a neologism that appeared with the transition from traditional to modern society.

Scenario analysis matured during Cold War confrontations between major powers, notably the United States and the Soviet Union. It became widespread in insurance circles in the 1970s when major oil tanker disasters forced a more comprehensive foresight. The scientific approach to risk entered finance in the 1960s with the advent of the capital asset pricing model and became increasingly important in the 1980s when financial derivatives proliferated. It reached general professions in the 1990s when the power of personal computing allowed for widespread data collection and numbers crunching.

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