Types of Risk 5.02

By: Emily Stacy

Risk

The possibility of incurring a loss

Economic Risk

It results in financial loss.

Controllable Risk

Occurs when conditions can be controlled to lessen the chance of harm.

Uncontrollable risk

Cannot be controlled or reduced by your actions.

Insurable Risk

Meets the criteria of an insurance company for coverage

Uninsurable Risk

Unpredictable amount of loss

Ways that businesses manage risk

Avoid, Assume, Transfer, and Insure