Page 11 - RISK Management IC86 Ebook
P. 11
The Insurance Times
Examples of pure risks include
Chemical : Fire, Explosion
Natural : Cyclone, Flood, Earthquake
Social : Riot, Strike, Theft, Fraud, Negligence
Technical : Machinery Breakdown
Personal : Death, Disablement, Sickness, theft, fraud
l Speculative Risks are risks where the prospect is either gain
or loss.
l It can be seen that in most cases it is unlikely that anything
other than loss will result.
l Entrepreneurial or business risk undertaken by businessmen
is an example of speculative risk where either profit or loss
may result. The following chart provides illustrations of
business risks.
Technical : New Technology
Social : Consumer Behaviour, Industrial Unrest
Economic : Inflation, Tax Policy, Competition
Political : War, Nationalisation
B. Dynamic and Static Risks
These are more properly identified with the factors causing
change. Dynamic risks are those associated with changes
in society and arise from market, management and/or
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