A risk score is a numerical value assigned to individuals or entities to quantify their level of risk in a particular context, such as financial transactions, insurance claims, or medical diagnoses. It is calculated based on various factors, including demographic information, historical behavior, and external data sources. Risk scores are used by organizations to assess and manage potential risks, make informed decisions, and prioritize resources effectively. High-risk scores indicate a greater likelihood of negative outcomes, while low-risk scores suggest a lower level of risk.