Rrezik

Rrezik is the Albanian noun for risk or danger. In everyday language it denotes the possibility of harm, loss, or unwanted outcomes, as well as the uncertainty surrounding such outcomes. In formal contexts the term is analyzed through risk management, which seeks to understand and address potential adverse events rather than avoid them completely.

The concept of rrezik covers both the probability that a negative event will occur and the magnitude of its impact. This makes it a function of likelihood and consequence, and it is often expressed as a product of these factors in quantitative assessments or described qualitatively in risk matrices and checklists.

Risk management processes typically include identification, assessment, treatment or mitigation, monitoring, and communication. International standards such as ISO 31000 provide principles and guidelines for creating a risk framework, while organizations establish risk appetite, tolerance levels, and governance structures to guide decisions.

Common domains include financial risk (credit, market, liquidity), operational risk (system failures, process gaps, cyber security), health and safety risk (injury or illness), environmental risk (natural hazards, climate-related threats), and reputational risk (damage to public perception).

Risk assessment combines qualitative methods with quantitative models such as scenario analysis, probabilistic forecasting, and stress testing. Tools like risk registers, heat maps, and dashboard reporting assist monitoring and communication to stakeholders.