Page 9 - RISK Management IC86 Ebook

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ii. Lack of capability i.e. lack of knowledge /skill/
competence,

iii. Lack of motivation i.e. indifference or refusal to deal with
a risk problem.

Risk Classification

Risks have been mainly classified as:

A. Personal, Property or Liability Risk
a. Personal: Potential loss to the persons
b. Property: Potential loss to the property
c. Liability Risk: Potential liability for any individual or
institution.

B. Physical, Social Or Market Risk
a. Physical: Storm, Tempest, Flood, Hurricane and such
other natural phenomena.

b. Social: Riot, Strike, Civil Commotion, Burglary, Theft
etc

c. Market: The price reduction or the purchase and sale
constraints are involved.

C. Pure or Speculative Risk
a. Pure Risk: is considered in the context of the existence

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