Are you struggling with searching Types/Classification of Pure Risk?, now you are in right place, here we briefly discuss it, Pure Risk & Their Classification – Pure Risk & Their Classification Pure Risk & Their Classification Now the classification of pure risk is discussed below. Pure risk is divided into two parts on the basis of insurability. Namely:
1. Qualify Insurance Risk
2. Disqualify Insurance Risk
1. Qualify Insurance Risk:
The risks that can be insured are called insurable risks. Insurable risk can again be divided into three parts:
a. Asset Risk: The risk caused by the assets of the business is called asset risk.
B. Personal Risk: The risk of any loss or income on a person’s personal life is called personal risk.
C. Risk related to the lawful responsibility: If there is a possibility of harm to the person due to negligence or carelessness, it is called risk related to the lawful responsibility.
2. Disqualify Insurance Risk:
There are some risks that cannot be insured or are not insured. These risks are called uninsured risks. That means all these risks are not controllable. Uninsured risk can be further divided into three categories. Namely:
a. Market Risk: Market risk is related to economic risk. There are some risks in the economy that are related to the market. Due to all these risks, the economy suffers severely These risks can never be controlled. Such as a change in market price, change in consumer demand and taste, change in share price, change in competition and fashion, etc.
B. Political Risk: Risk caused by political reasons is called political risk. War = the risk caused by political instability, restrictions on free trade, changes in monetary policy, etc. is called political risk.
C. Production Risk: The risk associated with production is called production risk. Production risk is what causes the failure of self-efficacy, the solution of strategic problems of production, and the expiration of the production period. Yet if you have any questions about Types/Classification of Pure Risk related mail or comment us, we are ready to help you.