Risk Calculator
Created By : Vaibhavi Kumari
Reviewed By : Rajashekhar Valipishetty
Last Updated : Apr 03, 2023
Welcome to our Risk Calculator. This tool is helpful to determine the risk by measuring the loss connected with the occurrence of the disruption. You have to enter the probability of failure and loss details and press the calculate button to check the risk in a split of seconds.
Risk Calculator: Seeking help to find the risk? You come to the correct place as we are giving useful details about the risk concept in probability. With the help of this calculator, you can save time and understand the logic behind it. Learn the simple steps to calculate the risk, definition of risk, its formula with solved questions.
Risk Definition | Formula of Risk
Relative risk is defined as the ratio of the probability of the disease exposed and the probability of the risk unexposed. It can also be called the risk ratio. Risk can be calculated by measuring the expected loss connected to an object with the occurrence of the considered disruption. You can also use the expected loss calculator OR risk chance calculator. The risk formula is along the lines:
Risk = probability * loss
Where,
Probability is the probability of failure
Loss is the damage you have to bear in case of failure
How to Find Risk ?
Here are the steps to calculate the risk in an easy process.
- Get the probability of loss and failure in case of loss values.
- Multiply the probability with the amount of damage occurred due to failure.
- This product is the risk value.
Example:Let us consider that you have invested in a company that is subjected to a disrupting event of probability of 0.6 with the related loss of $25000. Calculate the amount of risk?
Given that,
probability = 0.6
loss = 25000
Risk = probability * loss
= 0.6 * 25000
= 15000
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Frequently Asked Question's on Risk Calculator
1. How do you calculate risk?
How to calculate probability of risk occurrence? Probability of occurrence of risk, You have to know the probability of failure and the amount of damage created due to failure values. Multiply that loss and probability of failure to get the risk value.
2. What is meant by risk?
Simple definition of risk. Risk is nothing but the prediction of expected loss by connecting with some value like investment etc.
3. What is the formula to calculate the risk?
The formula to calculate risk is Risk = Probability of failure * loss.