After reading this article you will learn about:- 1. Meaning of Risk 2. Types of Risk 3. Transfer. Meaning of Risk: In simple words risk is danger, peril, hazard, chance of loss, amount covered by insurance, person or object insured. The risk is an event or happening which is not planned but eventually happens with financial consequences resulting in loss. [...]
After reading this article you will learn about the meaning and types of risk retention. Meaning of Risk Retention: It is nothing than presuming that we are going to incur certain losses on a particular issue but at the same time are not willing to transfer such risks to another party. For example in an individual case a persons decides [...]
This article throws light upon the top four methods of measurement of risk. The methods are: 1. Range Analysis 2. Probability Distribution 3. Standard Deviation 4. Coefficient of Variation. Method # 1. Range Analysis: Where different returns from an asset are possible under different circumstances, more than one forecast of the future returns may be made. These returns may be [...]