MANAGEMENT

Detailed explanation-1: -A financial risk is a form of risk that arises from an event and has an adverse impact on a person’s financial condition.

Detailed explanation-2: -Uninsurable risk is a condition that poses an unknowable or unacceptable risk of loss for an insurance company to cover. An uninsurable risk could include a situation in which insurance is against the law, such as coverage for criminal penalties.

Detailed explanation-3: -Insurance companies assume the financial risk in exchange for a fee known as a premium and a documented contract between the insurer and individual. The contract states all the stipulations and conditions that must be met and maintained for the insurer to take on the financial responsibility of covering the risk.

Detailed explanation-4: -#3 – Financial Risk An example of financial risk includes a loss to the goods in the warehouse of the company due to the fire. These risks are insurable and are generally the main subjects of the insurance.