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Absolute Risk / Pure Risk
What is Absolute Risk about?
Regarding medicine terms, Everitt (1998, p1 & p161) guides that Absolute Risk is a synonym for Incidence in which this incidence refers to a measure of the rate at which people without a disease develop the disease during a specific period of time. A formula is provided to calculate the incidence as follows:
incidence = number of new case of a disease over a period of time ÷ population at risk of the disease in the time period
In business terms, Absolute Risk is also called the Pure Risk that refers to situation where there is a chance of either loss or no loss, but no chance of gain (BusinessDictionary, 2016).
Similarly, in the webpage of the medical dictionary, Farlex (2012) refers Absolute Risk to as probability that a specified event will occur in a specified population, in contrast to the relative risk of the event. Relevantly in scientific terms, the Institute for Work and Health (n.d.) informs that absolute risk is the number of people experiencing an event in relation to the population at risk.
Why does Absolute Risk matter?
References and useful links
Everitt, B.S. (1998). The Cambridge - Dictionary of Statistics. United Kingdom: Cambridge University Press
Relevant links: Risk Relative Risk
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