Types of Risk
I can describe types of risk and explain ways to handle risk
Risk
Economic Risk
Example- Someone investing money into something that might not work or benefit the company.
Non-Economic Risk
Example- Loss of someone in your family.
Pure Risk
Example- A deer eating your crops.
http://www.purdue.edu/uns/html4ever/2004/041101.Rhodes.crops.html
Speculative Risk
Example- Investing in a product not knowing whether it will make money or not.
Controllable Risk
Example- Living a seditary lifestyle.
Uncontrollable risk
Example- Having a heart attack
http://www.lifemartini.com/uncontrollable-risk-factors-for-heart-disease/
Insurable risk
Example- House getting flood damage and insurance company gets involved in building your house back.
http://www.rstreet.org/policy-study/government-sources-of-systemic-insurable-risk/
Uninsurable risk
Example- A hurricane hitting your hometown and destroying homes.
http://www.theguardian.com/money/2008/jun/18/homeinsurance.insurance
Example of a risk
Ways that a Business can manage risk
2. Tansfer, allow someone else to assume the risk.
3. Insur, purchasing insurance to cover risk
4. Assume, finishing an activity and accepting full responsibility