Risk Legal Meaning and Definition

Here is a simplified definition of the legal term Risk.

Risk (n)

1. The possibility of suffering harm or loss; danger.
2. A factor, course of action, or investment involving uncertain danger or hazard.

In law and finance, "risk" refers to the potential for loss or harm related to a decision or action, such as financial investments, business decisions, or legal actions. For example, there may be a 'risk' of losing money when investing in a company.