This chapter discusses the confusion about risk and its terminologies used in business. Concepts about risk and even the word risk are a source of considerable confusion even among those who specialize in the topic. There are a lot of well‐entrenched and mutually exclusive ideas about risk and risk management. One might think that agreement on what the word risk means should be relatively simple and, for that matter, should have been resolved long ago. Multiple definitions have evolved in multiple professions. Even worse, some will not even know they are using it differently from others and may incorrectly believe they are clearly communicating with other risk professionals. One needs vocabulary and concepts on firm footing before one can begin any heavy lifting with risk management. Risk is used in different fields where the related concept of uncertainty distinguishes between the qualitative and quantitative use of risk terms. This terminology is that it has to be considered part of a broader field of decision analysis. Just as risk management must be a subset of management in the organization, risk analysis must be a subset of decision analysis. Decisions cannot be based entirely on risk analysis alone but require an analysis of the potential benefits if managers decide to accept a risk.