Types of Risks
types of risks and ways to handle them
What is a risk?
Different Types of Risk
Economic Risk - A type of risk that results in financial loss
Non-Economic - A type of risk that may result in the embarrassment or inconvenience without financial impact
Pure Risk - A type of risk that is a threat of a loss without an opportunity for gain
Speculative Risk - A type of risk that offers the chance to experience gain or loss
Controllable Risk - A type of risk that occurs when conditions can be controlled to lessen the chance of harm
Uncontrollable Risk - A type of risk that cannot be controlled or reduced by actions
Insurable Risk - A type of risk that meets the criteria of an insurance company for coverage
Uninsurable Risk - A type of risk that the possible amount of loss is simply unpredictable
In a time of recession, it would be an economic risk to launch a business.
Growing your own food would be a non-economic risk, because the crop could fail.
Insuring a car would be pure because there is no way of gaining money if you wreck you car.
Investing in stock would be speculative because you have a chance for either profit or loss
You can do many things to reduce your risk of cancer, making it a controllable risk
Men are more likely to develop heart disease than women