RISK
I can describe types of risk and explain ways to handle risk
Risk
Example of risk- An example of risk would be if a student chooses to go hang out with friends all night when they should really be studying to make good grades.
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Economic risk
Examples of economic risk- If someone invest money in a stock then they are at risk of losing that money.
Non-economic risk
impact.
Examples of non-economic risk- An example of non-economic risk would be a cheerleader going to tumble and falling, there was not financial impact but she would be embarrassed.
Pure risk
Example of pue risk- If somone's house got torn down in a major storm then that would be pue risk.
Speculative risk
Example of speculative risk- When gambling you can either win more than you bet or loose it all.
Controllable risk
Example of controllable risk- One controllable risk people face is how to save their money, if they keep it all with them and not at a bank they are at risk of them loosing it.
Uncontrollable risk
Example of uncontrollable risk- An uncontrollable risk people face is what insurance company they choose to use. If that insurance company fails, there was nothing the person could do since that are not in charge of the company.
Insurable risk
Example of insurable risk- An insurable risk is a home or car, they can be covered but something could still happen to them.
Uninsurable risk
Example of uninsurabe risk- An uninsurable risk would be a pandemic.
4 ways to manage risk
2. Transfer
3. Insure property
4. Insure business operations