The risk guidance template will show you how to score your risk against the impact (what are the consequences) and the likelihood (how likely is the risk to happen).
We take risks and actions to reduce the impact of risks every day of our lives, without maybe thinking about it. When you go on holiday and trust the airline with your luggage you are taking a risk... I am sure we have all heard/experienced lost luggage horror stories. To minimise this risk you could take out travel insurance that promises to refund any lost luggage, you are reducing the impact of the risk.