Risk is usually associated with uncertainty, where risk includes the possibility of an undesirable event coupled with severity. For example, if sales for next month are above a certain amount (a desirable event), then orders will reduce the inventory. If the reduction in inventory is large enough, there will be a delay in shipping orders (an undesirable event). If a delay in shipping means losing orders (severity), then that possibility presents a risk. As uncertainty and risk increase, decision-making becomes more difficult.