What is 'risk'?
Understanding 'risk' in insurance is the "uncertainty of the occurrence of an event that can cause economic loss".
What are the forms that risk?
Forms of risk include pure risk, speculative risk, particular risk and fundamental risk. Pure risk is the risk that consequently there are only two kinds: loss or break even, for example, theft, accident or fire. Speculative risk is the risk that consequently there are three kinds: loss, gain or break even, ie gambling. particular risk is the risk that comes from individual and local effects, such as plane crashes, car crash and the ship ran aground. While the fundamental risk is the risk that individuals and not from the impact area, such as hurricanes, earthquakes and floods.
On the principle of proper financial management, both as an individual or company must have what is called risk management. The objectives include: reduce spending, preventing the company from failure, increase corporate profits, lower production costs and so on.
Understanding 'risk' in insurance is the "uncertainty of the occurrence of an event that can cause economic loss".
What are the forms that risk?
Forms of risk include pure risk, speculative risk, particular risk and fundamental risk. Pure risk is the risk that consequently there are only two kinds: loss or break even, for example, theft, accident or fire. Speculative risk is the risk that consequently there are three kinds: loss, gain or break even, ie gambling. particular risk is the risk that comes from individual and local effects, such as plane crashes, car crash and the ship ran aground. While the fundamental risk is the risk that individuals and not from the impact area, such as hurricanes, earthquakes and floods.
On the principle of proper financial management, both as an individual or company must have what is called risk management. The objectives include: reduce spending, preventing the company from failure, increase corporate profits, lower production costs and so on.
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