The Principle of Risks
In daily activities we often hear the word” risk”. Various risks, such as the risk of fire, Vehicle accident on the road, exposed to the risk of flooding in the rainy season and so forth, can cause losses if the risks are not anticipated from the beginning. Next question is, what is the understanding of ‘risk’, particularly in the insurance?
What is the ‘risk’?
The ‘risk’ in insurance is the “uncertainty of the occurrence of events that can cause economic loss.”
What kind of that risk?
Forms of risk, pure risk, speculative risk, particular risks and fundamentals risk.
Pure risk is the risk that a result there are only 2 kinds: loss or break even, for example, theft, accident or fire.
Speculative risk is the risk that there are 3 types of consequences: loss, fate, or break even, for example, gambling.
Particular risk is the risk that comes from individuals and local impact, for example, fall air, car and boat collision aground.
While the fundamental risk is the risk that is not derived from individual and broad impact, such as hurricanes, earthquakes and floods.
April 28th, 2009 at 20:55
[...] at Business, Insurance, Credit Card and Loan Info « The Principle of Risks [...]
April 28th, 2009 at 21:02
[...] principle, every time we could get hig risk situation. Insurance is one form of risk control is carried out [...]