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The operator's mathematical margin, equal to 100% minus the RTP. It is not a risk the operator takes; it is the price of the entertainment, charged on every unit you wager.
The percentage of total wagers a game is designed to pay back over millions of rounds. A 96% RTP means the game keeps 4% of everything staked, which is the house edge. It applies to turnover rather than to your deposit, so replaying the same money charges the edge again each time.
The statistical spread of results around the average. Variance is why a session almost never resembles the RTP: over a few hundred rounds the noise is far larger than the edge.