What does risk inherently include as part of its definition?

The definition of risk inherently encompasses both mistakes and success because risk involves the uncertainty that is associated with making decisions where outcomes can vary. When evaluating risk, individuals consider the potential for both positive and negative results.

Success represents the favorable outcomes that can arise from taking a risk, such as achieving a goal or realizing a significant return on an investment. Conversely, mistakes and failures are also part of taking risks, as these outcomes highlight the potential downsides when things do not go as planned. Understanding that risk includes both the possibility of success and the reality of making mistakes provides a comprehensive view of decision-making and encourages a balanced approach to evaluating risks.

In contrast, defining risk in terms of only success, only mistakes, or only failure limits the understanding of risk to just one aspect of its nature, which does not accurately reflect the complex interplay between various outcomes that characterize risk-taking scenarios.