Page 9 - Insurance Surveyors Book Ebook IC S01

Survey And Loss Assessment IC-S01

Particular risks are to some degree under the control of the individual or

organization concerned and affect only the party incurring the risk.

D. "Commercial" and "Insurable" Risk

 The commercial risks are normally associated with speculative or dynamic

risks and are usually regarded as being uninsurable.

 An insurable risk is a risk that meets the ideal criteria for efficient insurance.

The concept of insurable risk underlies nearly all insurance decisions.

Types of Risk

Thus the risks faced by the business enterprise fall into three main categories:

 Those which are at least partially manageable by management

such as physical damage, liability etc

 Those directly controllable by management including risks normally

associated with commercial management such as staff selection and control

 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.

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