Final answer:
An uncertain event or condition that may impact project objectives is called a risk. Risk is a key concept in business, and insurance companies evaluate and manage risk to provide protection against unforeseen events.
Step-by-step explanation:
An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives is termed as risk. This concept is crucial in various fields, notably in business and economics, where it is closely related to the operations of insurance. Insurance companies often have to work with imperfect information when estimating the risk associated with a potential event or condition affecting an individual or group. Factors such as natural disasters, economic changes, or personal actions contribute to the occurrence of these economic risks, over which individuals have very little control. Insurance works to mitigate the impacts of these unpredictable events, ensuring that people have support for unforeseen accidents or disasters.