The Key Difference Between Risk and Uncertainty

risk vs uncertainty
Feature	Risk	Uncertainty
Definition	Situation where probabilities of outcomes are known or can be estimated.	Situation where probabilities of outcomes are unknown or cannot be measured.
Predictability	More predictable as probabilities can be assigned.	Less predictable due to lack of information or data.
Measurement	Can be quantified using statistical methods and models.	Cannot be quantified reliably.
Decision Making	Decisions can be based on calculated risks.	Decisions made with incomplete information, often subjective.
Examples	Insurance risks, investment risks with known probabilities.	New market entry with unknown factors, disruptive innovation.
Management	Risk can be managed, mitigated, or transferred (e.g., insurance).	Uncertainty is harder to manage; requires flexibility and adaptability.
Impact	Risks can be planned for and controlled.	Uncertainty can lead to unexpected outcomes.