ABSTRACT

Etymologically, the word risk may be traced back to classical Greek Rizikon (Greek pikariza), meaning roots, later used in Latin for cliff. For the sociologist Niklas Luhmann the term risk is a neologism which appeared in transition from traditional to modern society. In the middle ages, the word "rascium" was used in highly specific contexts above all sea trade and its ensuing legal problems of loss and damage. In the vernacular languages of the 6th century, the words "rischio and riezgo" were used, both terms derived from the Arabic word "rizia" meaning to seek property. This was introduced to continental Europe through interactions with the Middle Eastern and north Arab traders. The term risk appeared in English language, onl..rn the 17th century and seems to have been imported from continental Europe. When the terminology took grounds, it replaced the notion that thought in terms of good and bad fortune. The scientific approach to risk entered finance in the 1980s when financial derivative proliferated. It reached general professions in the I 990s when the power of personal computing allowed for widespread data collection and number crunching. Today there are several definitions of risk that vary by specific applications and situational contexts.