Types of Risks

I can describe types of risk and explain ways to handle risk


The possibility of incurring a loss.
Big image

Economic Risk

A type of risk that results in financial loss.
Big image


A type of risk that may result in the embarrassment or inconvenience without financial impact.
Big image

Pure Risk

A type of risk that is a threat of a loss without an opportunity for gain.
Big image

Speculative Risk

A type of risk that offers the chance to experience gain or loss.
Big image

Controllable Risk

A type of risk that occurs when conditions can be controlled to lessen the chance of harm.
Big image

Uncontrollable Risk

A type of risk that cannot be controlled or reduced by actions.
Big image

Insurable Risk

A type of risk that meets the criteria of an insurance company for coverage.
Big image

Uninsurable Risk

A type of risk that the possible amount of loss is simply upredictable.
Big image


Economic Risk - American Company XYZ invests $1,000,000 in a manufacturing plant in the Congo. Aside from the business risk associated with making the plant profitable, Company XYZ is exposed to economic risk.

Non-Economic Risk - Having a buggy full of groceries and not having any money on your debit card.

Pure Risk - When frost covers your strawberry patch, you have no choice of gain only loss.

Speculative Risk - Buying a lottery ticket.

Controllable Risk - Choosing to eat healthy or to eat fast food for lunch everyday.

Uncontrollable Risk - An elderly man having a heart attack.

Insurable Risk - Getting in a car accident that your insurance company covers.

Uninsurable RIsk - Recessionary period in an economic cycle