Risk vs. Chance: Know the Difference
By Shumaila Saeed || Updated on December 25, 2023
Risk refers to the possibility of loss, harm, or failure, often associated with a decision or action. Chance, in contrast, denotes a likelihood or probability of something happening, without the connotation of potential loss.
Key Differences
Risk refers to the exposure to potential harm or loss, often quantifiable, while chance denotes the likelihood or probability of an event occurring, which may be random and less quantifiable. Risk often implies a choice or action that leads to a possible negative outcome, whereas chance is more about the occurrence of events beyond control.
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Dec 02, 2023
Risk is typically measured and managed, such as in finance or safety planning, involving calculations of potential losses and strategies to mitigate them. Chance, on the other hand, is often associated with randomness and uncertainty, more akin to probabilities in games of luck or natural occurrences where control is minimal.
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Dec 02, 2023
In decision-making, risk assessment is crucial for determining the potential downsides and deciding whether to proceed. Chance, however, often represents the uncontrollable elements or luck factors in the outcome of a decision.
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Dec 02, 2023
Risk is often perceived as a negative aspect to be managed or minimized. In contrast, chance can be seen as neutral, embodying both opportunities and uncertainties without an inherent positive or negative connotation.
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Dec 02, 2023
The concept of risk is central in fields like insurance, finance, and health, where risks are assessed, quantified, and managed. Chance plays a significant role in fields like statistics, gambling, and physics, where it's associated with randomness and probability.
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Dec 02, 2023
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Comparison Chart
Definition
Potential for loss or negative outcome
Possibility of something happening
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Dec 02, 2023
Quantification
Often measurable and quantifiable
Less quantifiable, associated with randomness
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Dec 02, 2023
Application
Central in finance, insurance, health
Important in statistics, gambling, physics
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Dec 02, 2023
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Risk and Chance Definitions
Risk
The possibility of suffering harm or loss.
There's a risk of injury when playing contact sports.
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Dec 02, 2023
Chance
The occurrence of events in the absence of any obvious intention or cause.
Winning the lottery is purely a matter of chance.
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Dec 02, 2023
Chance
An opportunity or possibility under uncertain conditions.
I took a chance on the new job, and it paid off.
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Dec 02, 2023
Risk
A factor, thing, element, or course involving uncertain danger; a hazard
"the usual risks of the desert.
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Oct 19, 2023
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Chance
The unknown and unpredictable element in happenings that seems to have no assignable cause.
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Oct 19, 2023
Chance
A force assumed to cause events that cannot be foreseen or controlled; luck
Chance will determine the outcome.
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Oct 19, 2023
Chance
Often chances The likelihood of something happening; possibility or probability
Chances are good that you will win. Is there any chance of rain?.
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Oct 19, 2023
Chance
An accidental or unpredictable event
"He sprang to his feet and turned to run. At the same moment by a lucky chance the moon broke through the clouds" (Arthur Conan Doyle).
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Oct 19, 2023
Chance
(Baseball) An opportunity to make a putout or an assist that counts as an error if unsuccessful.
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Oct 19, 2023
Risk
(uncountable) The probability of a negative outcome to a decision or event.
There is risk of being brutalized, arrested, imprisoned and tortured, all because I want you to know the truth about this matter.
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Oct 19, 2023
Chance
Caused by or ascribable to chance; unexpected, random, or casual
A chance encounter.
A chance result.
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Oct 19, 2023
Risk
(uncountable) The magnitude of possible loss consequent to a decision or event.
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Oct 19, 2023
Chance
To take the risk or hazard of
We thought we could jump over the puddle, but we were not willing to chance it.
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Oct 19, 2023
Risk
The potential negative effect of an event, determined by multiplying the likelihood of the event occurring with its magnitude should it occur.
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Oct 19, 2023
Chance
To have the fortune (to be or do something); happen
"My eye chanced to fall on the wizened houseplant on the windowsill" (Elisabeth Brink).
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Oct 19, 2023
Chance
Used with the impersonal subject it and a following clause or infinitive to indicate the occurrence of a usually unexpected or chance event
"Now it chanced that this car-line was owned by gentlemen who were trying to make money" (Upton Sinclair).
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Oct 19, 2023
Risk
(insurance) A type of adverse event covered under an insurance policy.
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Oct 19, 2023
Chance
(countable) An opportunity or possibility.
We had the chance to meet the president last week.
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Oct 19, 2023
Risk
(countable) A thing (from the perspective of how likely or unlikely it is to cause an adverse effect).
That man is going to be a big risk once he's out of prison.
Those stairs are a major risk.
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Oct 19, 2023
Chance
(uncountable) Random occurrence; luck.
Why leave it to chance when a few simple steps will secure the desired outcome?
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Oct 19, 2023
Risk
A borrower (such as a mortgage-holder or person with a credit card).
A good credit rating indicates the customer is a desirable risk.
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Oct 19, 2023
Chance
(countable) The probability of something happening.
There is a 30 percent chance of rain tomorrow.
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Oct 19, 2023
Risk
(finance) A financial product (typically an investment).
Subprime mortgages are poor risks; especially for a pension scheme.
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Oct 19, 2023
Chance
To happen by chance, to occur.
It chanced that I found a solution the very next day.
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Oct 19, 2023
Risk
Hazard; danger; peril; exposure to loss, injury, or destruction.
The imminent and constant risk of assassination, a risk which has shaken very strong nerves.
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Oct 19, 2023
Risk
To expose to risk, hazard, or peril; to venture; as, to risk goods on board of a ship; to risk one's person in battle; to risk one's fame by a publication.
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Oct 19, 2023
Chance
To discover something by chance.
He chanced upon a kindly stranger who showed him the way.
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Oct 19, 2023
Chance
(Belize) To rob, cheat or swindle someone.
The car broke down a week after I bought it. I was chanced by that fast-talking salesman.
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Oct 19, 2023
Risk
A source of danger; a possibility of incurring loss or misfortune;
Drinking alcohol is a health hazard
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Oct 19, 2023
Chance
A supposed material or psychical agent or mode of activity other than a force, law, or purpose; fortune; fate; - in this sense often personified.
It is strictly and philosophically true in nature and reason that there is no such thing as chance or accident; it being evident that these words do not signify anything really existing, anything that is truly an agent or the cause of any event; but they signify merely men's ignorance of the real and immediate cause.
Any society into which chance might throw him.
That powerWhich erring men call Chance.
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Oct 19, 2023
Risk
A venture undertaken without regard to possible loss or injury;
He saw the rewards but not the risks of crime
There was a danger he would do the wrong thing
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Oct 19, 2023
Chance
The operation or activity of such agent.
By chance a priest came down that way.
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Oct 19, 2023
Risk
The probability of becoming infected given that exposure to an infectious agent has occurred
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Oct 19, 2023
Chance
The supposed effect of such an agent; something that befalls, as the result of unknown or unconsidered forces; the issue of uncertain conditions; an event not calculated upon; an unexpected occurrence; a happening; accident; fortuity; casualty.
In the field of observation, chance favors only the mind that is prepared.
It was a chance that happened to us.
The Knave of Diamonds tries his wily arts,And wins (O shameful chance!) the Queen of Hearts.
I spake of most disastrous chance.
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Oct 19, 2023
Chance
A possibility; a likelihood; an opportunity; - with reference to a doubtful result; as, a chance to escape; a chance for life; the chances are all against him.
So weary with disasters, tugged with fortune.That I would get my life on any chance,To mend it, or be rid on 't
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Oct 19, 2023
Risk
Expose to a chance of loss or damage;
We risked losing a lot of money in this venture
Why risk your life?
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Oct 19, 2023
Risk
Take a risk in the hope of a favorable outcome;
When you buy these stocks you are gambling
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Oct 19, 2023
Chance
To happen, come, or arrive, without design or expectation.
If a bird's nest chance to be before thee.
I chanced on this letter.
How chance, thou art returned so soon?
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Oct 19, 2023
Risk
Exposure to danger, harm, or loss.
Investing in stocks involves a significant risk of losing money.
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Dec 02, 2023
Chance
To take the chances of; to venture upon; - usually with it as object.
Come what will, I will chance it.
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Oct 19, 2023
Risk
A situation involving exposure to danger.
Skydiving is a high-risk activity.
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Dec 02, 2023
Risk
The intentional interaction with uncertainty.
Starting a new business is a risk that can lead to success or failure.
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Dec 02, 2023
Risk
The potential for a chosen action to lead to an unwanted outcome.
Driving too fast increases the risk of an accident.
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Dec 02, 2023
Chance
A possibility due to a favorable combination of circumstances;
The holiday gave us the opportunity to visit Washington
Now is your chance
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Oct 19, 2023
Chance
An unknown and unpredictable phenomenon that causes an event to result one way rather than another;
Bad luck caused his downfall
We ran into each other by pure chance
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Oct 19, 2023
Chance
A measure of how likely it is that some event will occur;
What is the probability of rain?
We have a good chance of winning
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Oct 19, 2023
Chance
Take a risk in the hope of a favorable outcome;
When you buy these stocks you are gambling
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Oct 19, 2023
Chance
Come upon, as if by accident; meet with;
We find this idea in Plato
I happened upon the most wonderful bakery not very far from here
She chanced upon an interesting book in the bookstore the other day
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Oct 19, 2023
Chance
Occurring or appearing or singled out by chance;
Their accidental meeting led to a renewal of their friendship
Seek help from casual passers-by
A casual meeting
A chance occurrence
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Oct 19, 2023
Chance
A possibility of something happening.
There's a chance of rain tomorrow.
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Dec 02, 2023
Chance
The probability of something occurring.
There is a 50% chance that the coin flip will land on heads.
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Dec 02, 2023
Chance
The random distribution of events or outcomes.
In roulette, each spin of the wheel is a new chance.
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Dec 02, 2023
Repeatedly Asked Queries
How is risk measured?
Risk is often measured in terms of likelihood and potential severity of loss.
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Dec 02, 2023
What is chance?
Chance refers to the likelihood of something happening, often out of one's control.
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Dec 02, 2023
Can risk be positive?
Typically, risk is associated with negative outcomes, but taking risks can lead to positive results.
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Dec 02, 2023
Is risk always avoidable?
Not all risks are avoidable; some are inherent in certain activities or decisions.
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Dec 02, 2023
Can chance be predicted in sports?
To some extent, using probability and statistics, but there's always an element of unpredictability.
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Dec 02, 2023
Is chance always random?
Chance often implies randomness, but it can be influenced by various factors.
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Dec 02, 2023
Can risk be managed?
Yes, risk can often be managed or mitigated through various strategies.
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Dec 02, 2023
How does chance play a role in games?
In games, especially of luck, chance determines the unpredictability of outcomes.
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Dec 02, 2023
How does chance differ from luck?
Chance is a concept in probability, while luck is a subjective interpretation of chance events.
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Dec 02, 2023
What's the relationship between risk and insurance?
Insurance is a tool to mitigate financial risks by transferring the cost of potential loss.
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Dec 02, 2023
Can we control chance?
Chance, by nature, is often beyond our control, though we can influence some aspects.
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Dec 02, 2023
Can we calculate chance?
Yes, chance can be calculated, especially in scenarios governed by probability.
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Dec 02, 2023
What role does risk play in business?
In business, risk management is crucial for making informed decisions and ensuring stability.
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Dec 02, 2023
How do risk and chance affect decision-making?
They influence the evaluation of potential outcomes and the willingness to engage in activities.
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Dec 02, 2023
How do risk and chance affect everyday life?
They play a role in almost all aspects, from simple decisions to major life choices.
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Dec 02, 2023
Is risk associated with choice?
Yes, risk often involves making choices with uncertain outcomes.
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Dec 02, 2023
Are risk and chance synonymous?
No, they are related but distinct concepts; risk is about potential loss, chance about probability.
Shumaila Saeed
Dec 02, 2023
Is understanding risk and chance important?
Yes, it's crucial for informed decision-making in personal and professional contexts.
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Dec 02, 2023
Is taking risks always bad?
Not necessarily; taking calculated risks can lead to growth and positive outcomes.
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Dec 02, 2023
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About Author
Written by
Shumaila SaeedShumaila Saeed, an expert content creator with 6 years of experience, specializes in distilling complex topics into easily digestible comparisons, shining a light on the nuances that both inform and educate readers with clarity and accuracy.
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