MANAGEMENT

Detailed explanation-1: -Broadly speaking, there are two main categories of risk: systematic and unsystematic. Systematic risk is the market uncertainty of an investment, meaning that it represents external factors that impact all (or many) companies in an industry or group.

Detailed explanation-2: -There are generally 3 types of risk that can be covered by insurance: personal risk, property risk, and liability risk.

Detailed explanation-3: -Risk is a chance of financial loss, while returns are monies the insurance company receives for incurring a given level or risk. If the risk is high, insurance companies are expecting a high return or premium.

Detailed explanation-4: -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.