MANAGEMENT

Detailed explanation-1: -Chance of loss is closely related to the concept of risk. Chance of loss is defined as the probability that an event will occur. Like risk, probability has both objective and subjective aspects.

Detailed explanation-2: -"Risk is the chance of loss.” Albert H. Mow-bray, Insurance (1st ed.; New York: McGraw-Hill Book Company, Inc., 1930), p.

Detailed explanation-3: -Possessory Risk of Loss: This type of risk exists when there is a possibility that you may not have possession of the goods. For example, if you lend your car to someone and they get into an accident, the possessory risk of loss would be the financial loss you incur from not having use of your car.

Detailed explanation-4: -The asset may lose its value if a certain event happens. This chance of loss is called as risk. The cause of the risk event is known as peril.

Detailed explanation-5: -Risk of loss is the allocation of responsibility for covering the Risk of damage to or loss of goods after a sale has been completed, but before delivery. If the seller bears risk of loss during transport, the seller has a responsibility to provide substitute goods should the goods get lost or destroyed in transit.