Risk assessment in the context of "Actuarial science"

Risk is the possibility of something bad happening, comprising a level of uncertainty about the effects and implications of an activity, particularly negative and undesirable consequences.

Risk theory, assessment, and management are applied but substantially differ in different practice areas, such as business, economics, environment, finance, information technology, health, insurance, safety, security, and privacy. The international standard for risk management, ISO 31000, provides general guidelines and principles on managing risks faced by organizations.

Climate risk is the potential for problems for societies or ecosystems from the impacts of climate change. The assessment of climate risk is based on formal analysis of the consequences, likelihoods and responses to these impacts. Societal constraints can also shape adaptation options. There are different values and preferences around risk, resulting in differences of risk perception.

Common approaches to risk assessment and risk management strategies are based on analysing hazards. This can also be applied to climate risk although there are distinct differences: The climate system is no longer staying within a stationary range of extremes. Hence, climate change impacts are anticipated to increase for the coming decades. There are also substantial differences in regional climate projections. These two aspects make it complicated to understand current and future climate risk around the world. Scientists use various climate change scenarios when they carry out climate risk analysis.

Actuarial science is the discipline that applies mathematical and statistical methods to assess risk in insurance, pension, finance, investment, psychology, medicine, and other industries and professions.

Actuaries are professionals trained in this discipline. In many countries, actuaries must demonstrate their competence by passing a series of rigorous professional examinations focused in fields such as probability and predictive analysis. According to the U.S. News & World Report, their job often has to do with using mathematics to identify risk so they can mitigate risk.

Measures of pollutant concentration are used to determine risk assessment in public health.

Industry is continually synthesizing new chemicals, the regulation of which requires evaluation of the potential danger for human health and the environment. Risk assessment is nowadays considered essential for making these decisions on a scientifically sound basis.

A flood risk assessment (FRA) is an assessment of the risk of flooding from all flooding mechanisms, the identification of flood mitigation measures and should provide advice on actions to be taken before and during a flood. The sources of water which produce floods include: groundwater, surface water (rivers, streams or watercourses), artificial water (burst water mains, canals or reservoirs), sewers and drains, seawater.

For each of the sources of water, different hydraulic intensities occur. Floods can occur because of a combination of sources of flooding, such as high groundwater and an inadequate surface water drainage system. The topography, hydrogeology and physical attributes of the existing or proposed development need to be considered. A flood risk assessment should be an evaluation of the flood risk and the consequences and impact and vulnerability.

Population viability analysis (PVA) is a species-specific method of risk assessment frequently used in conservation biology.It is traditionally defined as the process that determines the probability that a population will go extinct within a given number of years.More recently, PVA has been described as a marriage of ecology and statistics that brings together species characteristics and environmental variability to forecast population health and extinction risk. Each PVA is individually developed for a target population or species, and consequently, each PVA is unique. The larger goal in mind when conducting a PVA is to ensure that the population of a species is self-sustaining over the long term.