Types of Risks

POBF 5.02

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Economic Risk

results in financial loss

Ex: Launching a luxury item immediatly before or during a reccession


http://www.google.com/url?sa=i&rct=j&q=economic+risk&source=images&cd=&cad=rja&uact=8&ved=0CAYQjB0&url=http%3A%2F%2Fwww.pieria.co.uk%2Farticles%2Ffundamental_value_in_a_risk-free_free_world&ei=S-mFVLXdNsyrggSQjoBI&bvm=bv.80642063,d.eXY&psig=AFQjCNHYHLH3Sfef-PEo79jt6IHhnG3tzg&ust=1418148540486963

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Non-Economic Risk

may result in embarrassment or inconvience without a financial impact.

Ex: Climate change


http://www.google.com/url?sa=i&rct=j&q=non-economic+risk&source=images&cd=&cad=rja&uact=8&ved=0CAYQjB0&url=http%3A%2F%2Fwww.shareable.net%2Fblog%2Fno-money-no-worries-vivan-los-gifts&ei=HuqFVPKOLcqqggTb8oLQAQ&bvm=bv.80642063,d.eXY&psig=AFQjCNGHgaJPccC05yqcKSFFfUQeoCAqgw&ust=1418148724034182

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Pure Risk

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Uncontrollable Risk

cannot be controlled or reduced by your actions

Ex: if the customers dont pay back their store credit


http://www.google.com/url?sa=i&rct=j&q=uncontrollable%20risk&source=images&cd=&cad=rja&uact=8&ved=0CAYQjB0&url=http%3A%2F%2Fwww.keepcalm-o-matic.co.uk%2Fp%2Fkeep-calm-and-know-the-risk-factors-uncontrollable%2F&ei=xCiHVK35M4KbgwSmyIOYBQ&bvm=bv.81449611,d.eXY&psig=AFQjCNFez23jnfENtmrwVROLxar-lOyE4Q&ust=1418230305680053

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Insurable Risk

meets the criteria of an isurance company for coverage

Ex: Business truck gets into a wreck


http://www.google.com/url?sa=i&rct=j&q=insurable+risk+examples&source=images&cd=&cad=rja&uact=8&ved=0CAYQjB0&url=http%3A%2F%2Fentreconnection.com%2Finsurable-risks-what-can-be-protected%2F&ei=SSmHVPe1PMLsgwTvzYLIAg&bvm=bv.81449611,d.eXY&psig=AFQjCNEANZXtnqW2J587hGTi5TRshT_WUQ&ust=1418230472508168

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