for teaching

1. Risk: Risk can be defined as the probability of occurrence of adverse event.
Risk can be of many types, they can be classified as fallows,
1. Pure and speculative
2. Fundamental and particular
3. Enterprise risk.
Pure have the probability of occurrence of loss or no loss, but no profit from the happening or
not happening of the event. Whereas speculative risk is differ from pure risk.
Fundamental risk associate with whole industry whereas particular risk associate with
particular firm, they may be human errors.
Enterprise risk is associated all risks along with financial, operations, direct and indirect risks.
Pure risk can subdivided as fallows
1. Personal risk
 Risk of premature death
 Risk of insufficient income
 Risk of pure health
 Risk of un-employment
2. Property risk
3. Liability risk
We have many methods to handle the risk they are,
1. Avoidance
2. Loss control
3. Retention
4. Noninsurance transfer
5. Insurance
Everyone is associated with risk in one or many ways, we have to transfer our risk by using
insurance or others modes of transfer like hedging, mutual funds etc..