Which of the following best describes the term "risk"?

The term "risk" is best described as the chance of a negative outcome. In the context of business and decision-making, risk involves uncertainty about future events and the potential for loss or unfavorable results. This understanding is fundamental to various aspects of business, including investment, project management, and strategic planning. Businesses must assess and manage risks to minimize potential losses while pursuing opportunities for profit and growth.

The other options provided do not accurately capture the essence of risk. The certainty of financial gain suggests a complete lack of uncertainty, which contradicts the very nature of risk. Assurance against loss implies a guarantee that no losses will occur, also misrepresenting risk, as it inherently involves unpredictability. A guarantee of safety in business operations implies there are no potential hazards, which is unrealistic in any business context due to the myriad factors and variables involved. Therefore, defining risk as the chance of a negative outcome provides the most comprehensive understanding of the concept in a business environment.