What is risk?

Some might say risk is a strategy board game where players try to occupy every territory, eliminating other players and resulting in world domination.

A more popular answer is likely to be found with the standard definition of risk. The Merriam-Webster Dictionary defines risk as the possibility of loss or injury; someone or something that creates or suggests a hazard; the chance of loss or the perils to the subject matter of an insurance contract; the degree of probability of such loss; the chance that an investment will lose value.

That might be a bit more familiar to real estate investors.

In the years following the global financial crisis, risk and risk management were the topics on everyone’s lips. Discussions on risk naturally lead to discussions of Black Swan events — those low-probability, high-negative-impact types of tail events that typically cannot be predicted (and, therefore, almost always are not). Rather than try