Personal Loss Exposures—Personal Pure Risk Exposure to premature death, sickness, disability, unemployment, and dependent old age are examples of personal loss exposures when considered at the individual/personal level. An organization may also experience loss from these events when such events affect employees.

Some examples of situational prevention in effect include installing surveillance equipment in areas that experience a lot of vandalism. Another example includes installing security screens in banks to prevent robberies.

Situational crime prevention (SCP) focuses on the more immediate opportunities for offending. Situational crime prevention seeks to reduce the harms caused by crime through altering immediate or situational factors in the environments where crime regularly occurs.

Insurable Types of Risk There are generally 3 types of risk that can be covered by insurance: personal risk, property risk, and liability risk.

Insurable risks are risks that insurance companies will cover. These include a wide range of losses, including those from fire, theft, or lawsuits. When you buy commercial insurance, you pay premiums to your insurance company. In return, the company agrees to pay you in the event you suffer a covered loss.

Most insurance providers only cover pure risks, or those risks that embody most or all of the main elements of insurable risk. These elements are “due to chance,” definiteness and measurability, statistical predictability, lack of catastrophic exposure, random selection, and large loss exposure.

Pure risks are risks that have no possibility of a positive outcome—something bad will happen or nothing at all will occur. The most common examples are key property damage risks, such as floods, fires, earthquakes, and hurricanes. Litigation is the most common example of pure risk in liability.

Types of Risk Broadly speaking, there are two main categories of risk: systematic and unsystematic. Systematic Risk – The overall impact of the market. Unsystematic Risk – Asset-specific or company-specific uncertainty. Political/Regulatory Risk – The impact of political decisions and changes in regulation.

The basic methods for risk management—avoidance, retention, sharing, transferring, and loss prevention and reduction—can apply to all facets of an individual’s life and can pay off in the long run. Here’s a look at these five methods and how they can apply to the management of health risks.

There are 4 broad classes of risks we may come across. They are Income Risk, Expense Risk, Asset/Investment Risk and the forth is Debit/Credit Risk.