How does systemaccounting define risk?


Risk is just a measure of how uncertain you are of something. If risk = 0, you say, "I'm certain". And if risk = 1, you say, "I have no clue". Risk is also purely subjective since it can only exist when perceived by humans having “incomplete information”. For risk to truly equal zero, there would either have to be i) zero humans to perceive it, or ii) a perfect measure of what is being assessed throughout the trajectory of its existence. Since humans are definitely here to stay, the other option is to be pursued:

Within the context of a model system in classical mechanics, the phase space coordinates of the system at any given time are composed of all of the system's dynamical variables. Because of this, it is possible to calculate the state of the system at any given time in the future or the past, through integration of Hamilton's or Lagrange's equations of motion. ( 2012-08-15)

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