Introduction

Abstract

Most of us use the concept of risk frequently in daily language. “If you decide to do this, you risk suffering negative consequences.” This sentence can be referred to a discussion with a colleague at work when talking about new business strategies, or with your partner when reflecting on financial precautions or health care, or with yourself when deliberating about whether to eat fish in a sushi restaurant. But what exactly is risk? How can we value risk? How can risk change our decisions? How can we improve our decisions through the consideration of risk? How is risk actually assessed? In terms of percentage? With the means of a linear scale form 1 to 10 or by using an ample scale from green to red? For the beginning we start with a comparison of different risk situations by using relative terms such as “lower” or “higher”.