POBF

Madison Stout

Risk-The possibility of incurring a loss.

ex. loosing your money playing the lotory.

Economic risk- A type of risk that results in financial loss

e. loosing stock.

Non-Economic Risk- A type of risk that may result in the embarrassment or inconvenience without financial impact.

ex. getting money stole from you.

Pure risk- A type of risk that is a threat of a loss without an opportunity for gain.

ex. getting into a wreck.

Speculative risk- A type of risk that offers the chance to experience gain or loss.

ex. Getting car insurance.


Controllable Risk- A type of risk that occurs when conditions can be controlled to lessen the chance of harm.


ex. betting on something that you know will come threw.


Uncontrollable Risk- A type of risk that cannot be controlled or reduced by actions.


ex. betting on the weather.


Insurable Risk- A type of risk that meets the criteria of an insurance company for coverage.

ex. Wrecking your car.



Uninsurable Risk- A type of risk that the possible amount of loss is simply upredictable.


ex. Giving someone money to borrow and seeing if they pay you back.