Page 3 - Insurance Surveyors Book Ebook IC S01

Survey And Loss Assessment IC-S01

 In simple terms Risk can be expressed for a business as uncertainty that will

not allow the business targets to be achieved and the degree of the effects on

targets will depend upon the degree of risk. This can also apply to any activity

like safely crossing the road, building a new factory,etc.

 But risk is not always loss causing and some risks may cause both loss and gain

(usually to different people as with the extra work a repairer gets after a bad

storm).

Types of Risks

 They may be physical, causing direct harm or damage, or social, causing loss

of reputation or damage to self esteem.

 Sometimes a risk is not conscious. New risk situations may arise .from a

combination of physical circumstances e.g. Use of new materials, new type of

machinery etc.

Associated risks also include

 Currency inconvertibility &/or Non-Transfer

 Political Violence/War

 Business Interruption & Contingent Business Interruption

 Non-honouring of Promissory notes, Letters of Credit or sovereign guarantees,

 Contract Frustration

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