Risk and Uncertainty - Deepstash
Risk and Uncertainty

Risk and Uncertainty

People often confuse risk with uncertainty. But the terms "risk" and "uncertainty" do not refer to the same thing.

  • Risk is precise and quantifiable.
  • Uncertainty is when the underlying system is not understood.

The more you understand a system, the more able you are to convert uncertainty into risk.

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"An investment in knowledge always pays the best interest." - Benjamin Franklin

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