ABSTRACT
In the dictionary risk is defined as an exposure to the possibility of harm, loss, danger, or hazard (Funk and Wagnalls, 1968). In the insurance world and in most aviation applications, this is a term with a decidedly negative connotation. In the financial world, risk can have both a positive or a negative connotation. It can be positive to the investor willing to risk some of his resources on the chance for a large :financial gain. In fact, this is often true in the aviation world as well. In virtually every pilot decision there is a potential gain (economic, convenience, enjoyment, etc.). We will look at these values in a minute. In examining the definition to gain an understanding of risk, each part of the definition must be considered.
