I’ve seen a bit spoken about “tax risk” recently. It seems to me that there is a bit of chopping and changing over what is meant.
Just for reference, here is what I reckon is meant by the term.
I tend to think of tax risk in the form described in Wikipedia as ‘expectation value’ or ‘risk factor’.
“The probability of something happening multiplied by the resulting cost or benefit if it does.”
So, for me at least:
‘Tax risk’ = [Probability of tax liability arising] * [value of potential tax liability]