Risk - original

Add an image p Ch a t er THE PROBLEM OF RISK Th.S: Trần Nguyên Đán Add an image u Gr o p 1 NGUYỄN THỊ XUÂN AN LÊ THỊ TÚ ANH HUỲNH THÁI BẢO TRẦN THỊ THANH BÌNH PHAN VĂN CHIẾN EG CAT The Concept of Risk Peril and Hazard ORY The Burden of Risk The Growing Number and Variety of Pure Risk The concept of Risk The Degree of Risk Definitions of Risk Uncertainty and Its Relationship to Risk Classifications of Risk Definition of Risk Elements of Risk indeterminacy loss When a loss is possible, it has a probability between zero and one; it is neither impossible nor definite Note also that there is no requirement that the possibility be measurable – only that it must exist Uncertainty and Its Relationship to Risk A state of mind characterized by doubt, based on a lack of knowledge about what will or will not happen in the future Definition of uncertainty Uncertainty varies with the knowledge and attitudes of the person Whether or not a risk is recognized, however, does not alter its existance Relationship The Degree of Risk The probability of the adverse deviation Definition Insurance companies make predictions about losses that are expected to occur and charge a premium based on this prediction More risk or less risk exists in a given situation, depending on the standard deviation At times we use the terms more risk and less risk to indicate a measure of the possible size of the loss Measure risk Classifications of Risk Static and Dynamic Risks Fundamental and Particular Risks Pure and Speculative Risks Dynamic Static Risks Risks Are those resulting from changes in the economy Involve These dynamic risks that normally those losses would occur benefit even if there society were overnothe changes long run in the economy They are generally considered less predictable than static risks Fundamental and Particular Risks Fundamental risks involve losses that are impersonal in origin and consequence Particular risks involve losses that arise out of individual events and are felt by individuals rather than by the entire group Origin and consequences of the losses The distinction between pure and speulative risks is Pure and Speculative Risks an important one, because normally only pure risks are insurable Not all pure risks are insurable Used to designate those situations that involve only the chance of loss or no loss Pure Speculative risk describes a situation in which there is a possibility of loss, but also a possibility of gain Speculative Pril and Hazard Pril A peril is a cause of a loss Hazard A hazard is a condition that may create or increase the chance of a loss arising from a given peril Hazards are classified into three categories Physical hazards: consist of those physical properties that increase the chance of loss from the various perils Moral hazard refers to the increase in the probability of loss that results from dishonest tendencies in the character of the insured person Morale hazard: acts to increase losses where insurance exists, not necessarily because of dishonesty Risk Distinguished from Peril and Hazard Risk Indeterminacy Definition of loss Essence Indeterminacy Peril a cause of a loss Hazard a condition that may create or increase the chance of a loss arising from a given peril Risk, a condition that may create or indeterminacy increase the chance of a loss The burden of Risk When someone is negligent and that negligence results in injury to a person or damage to property, there is a financial loss These losses are the primary burden of risk and the primary reason that individuals attempt to avoid risk or alleviate its impact THE GROWING NUMBER AND VARIETY OF PURE RISKS Since the early 1800s, advances in technology have increased the sources of energy available to humankind, and with each new source have come new risks  ... of Risk Peril and Hazard ORY The Burden of Risk The Growing Number and Variety of Pure Risk The concept of Risk The Degree of Risk Definitions of Risk Uncertainty and Its Relationship to Risk. .. possible size of the loss Measure risk Classifications of Risk Static and Dynamic Risks Fundamental and Particular Risks Pure and Speculative Risks Dynamic Static Risks Risks Are those resulting from... premium based on this prediction More risk or less risk exists in a given situation, depending on the standard deviation At times we use the terms more risk and less risk to indicate a measure of the