MANAGEMENT

Detailed explanation-1: -Risk is “a measure of human injury, environmental damage or economic loss in terms of both the incident likelihood and the magnitude of the loss or injury” (AIChE/CCPS, 2000).

Detailed explanation-2: -Risk is the probability that an accidental phenomenon produces in a given point of the effects of a given potential gravity, during one given period.

Detailed explanation-3: -A speculative risk has the potential to result in a gain or a loss.

Detailed explanation-4: -Definition: Risk implies future uncertainty about deviation from expected earnings or expected outcome. Risk measures the uncertainty that an investor is willing to take to realize a gain from an investment. Description: Risks are of different types and originate from different situations.

Detailed explanation-5: -The two most common risk sharing examples are insurance policies and indemnification clauses in contracts. Insurance policies are the most common risk sharing strategy. A company or individual will purchase an insurance policy from the insurance company that ensures coverage of unexpected loss.