Types of Risk
by Anthony Davis
Risk and Risk Management
Ex. Economic risk is the chance that macroeconomic conditions like exchange rates, government regulation, or political stability will affect an investment, usually one in a foreign country.
Ex. The possibility that a person's house will be destroyed due to natural disaster is pure risk.
Ex. There are 3 possible outcomes of speculative risk, something good (gain), a loss, or staying even. Gambling and investing in stock is speculative risk.