BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following would not be an insurable risk?
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a pure risk
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a speculative risk
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a risk face by a large number of people
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a risk for which the amount of loss can be predicted
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Explanation:
Detailed explanation-1: -A risk may not be termed as insurable if it is immeasurable, very large, certain or not definable.
Detailed explanation-2: -Speculative risk has a chance of loss, profit, or a possibility that nothing happens. Gambling and investments are the most typical examples of speculative risk. The traditional insurance market does not consider speculative risks to be insurable.
Detailed explanation-3: -In contrast to speculative risk, pure risk involves situations where the only outcome is loss. Generally, these sorts of risks are not voluntarily taken on and, instead, are often out of the control of the investor. Pure risk is most commonly used in the assessment of insurance needs.
There is 1 question to complete.