The possibility of failure, or financial loss. If there is high risk, then there is high probability of failure. In security, risk is associated with how likely we are to be hacked or have data stolen.
Dollarama has a no-return policy, and the quality is cheap. The risk is high. BUT the price to buy the goods are cheap enough to outweight the risk.
Risk Intolerance
New/Unknown situtations are threatening
Risk Tolerance
New/Unknown situtations are desireable