Page 13 - RISK Management IC86 Ebook
P. 13
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l Those which are at least partially manageable by management
such as physical damage, liability etc
l Those directly controllable by management including risks
normally associated with commercial management such as
staff selection and control
l Those which are not under the direct control of management
but which may be manageable to some degree or other such
as the social, political and physical environment. These risks
however include circumstances from
which loss or gain may result.
Risk Attitudes
l Risk attitudes can be defined as the ways in which a person
behaves in an uncertain situation and vary from person to
person because of their personalities, economic status,
potential gains/ losses. These attitudes fall into one of the
following categories
i. Risk neutral - person reacts with the likelihood of its
occurrence
ii. Risk preferer - person welcomes the existence of risk
and uncertainty
iii. Risk averter - person normally frightened by risk &
does not like to live with uncertainty
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