The difference between risk and uncertainty - 1.1.1

Risks - in business are factors that are not expected but can be quantified, such as the risk of your factory being flooded.

Uncertainty - is being unsure of the factors influencing sales and therefore being unable to predict what will happen to the business in terms of its profits or growth. A business might try to minimise uncertainty by using marker research to anticipate the likely its decisions will have on its position in the market.