Page 10 - RISK Management IC86 Ebook
P. 10
Risk Management
of a chance of loss only, but not the chance of gain at all.
b. Speculative Risk: When there is a chance of gain as
well a loss.
D. Static or Dynamic Risk
a. Static Risk: Which are connected with losses caused by
the irregular action of the forces of the nature or the
mistakes and misdeeds of human beings.
b. Dynamic Risk: Which are associated with changes in
human wants and improvements in Machinery or
Technological innovations.
E. Fundamental or Particular Risk
a. Fundamental Risk: Risks associated with groups,
impersonal in original and effect. These fundamental risks
are in the form of Political or Economic changes happening
to a group.
b. Particular Risk: Which are associated with individuals.
Categories of Risks
A. Pure and Speculative Risk
Pure risks are events the occurrence of which result in either
loss to the individual or organization concerned.
Sashi Publications - www.sashipublications.com 11
Copyright@ The Insurance Times. 09883398055 / 09883380339
