Contingent liability

1. Is it true that contingent consideration is a future liability that depends on the result of some event (or some condition) like a court case etc but the problem is that it is a liability of the subsidiary alone which will eventually reduce the net assets of subsidiary?

2. We will calculate the contingent liability based on computing expected value of probability to see how likely this event is to happen or succeed and based on the chance or likelihood we will record the liability in our financial statements (is that true?)

3. Can you please give me any example to fully comprehend the contingent liability?

4. The journal entry therefore would be:
Contingent expense (debit)
Contingent liability (credit)

Contingent expense will be less from Group retained earnings whereas contingent liability will be less from net assets of subsidiary?

Is that all correct. Please explain. Thanks again!