Risk is a part of our daily lives. Risk is defined as a hazard , a peril, exposure to loss or injury. This definition suggests, that risk refers to the chance that some unfavorable event will occur. Some examples of risk are skydiving, betting at dogtrack races, betting on ball games, stock investing, and even taking classes at school. If one were to skydive, they are risking their life. Any betting rather it is legal or illegal is risking one's finances. Smoking is a risk of developing cancer. Some people risk going to hell by committing sins that they can avoid committing.

Most people in society view risk as a chance of loss. But the reality of risk occurs any time we cannot be certain about the outcome of a particular activity or event, so we are not sure what will happen in the future. Consequently, risk results from the fact that an action such as investing can produce more than one outcome in the future. Of course when multiple outcomes are possible, some of the outcomes are considered good and some of the possible outcomes are considered bad. We all should take risk with a cognitive probability of the outcome in mind.