MANAGEMENT

Detailed explanation-1: -While some coverage is available, these five threats are considered mostly uninsurable: reputational risk, regulatory risk, trade secret risk, political risk and pandemic risk.

Detailed explanation-2: -An uninsurable risk is a risk that insurance companies cannot insure (or are reluctant to insure) no matter how much you pay. Common uninsurable risks include: reputational risk, regulatory risk, trade secret risk, political risk, and pandemic risk.

Detailed explanation-3: -Moral Hazard Risk One of the most common risks that cannot be insured is “moral hazard.” This occurs when someone takes on more risk than they would if they were not insured.

Detailed explanation-4: -Most pure risks can be divided into three categories: personal risks that affect the income-earning power of the insured person, property risks, and liability risks that cover losses resulting from social interactions. Not all pure risks are covered by private insurers.