Scribd Logo
Upload

Welcome to Scribd!

  • RM 01 Chapter .

    Uploaded by

    g1lokikondarajanahallikolar
    4 views6 pages
    Risk is defined as the possibility of an investment or outcome differing from expectations, including the chance of losing some or all of the original investment. Uncertainty is when the potential outcomes or probabilities are unknown, such as unknown future events. The key differences between risk and uncertainty are that risk involves known chances of outcomes, some of which may be controllable, while uncertainty involves completely unknown outcomes and events that cannot be controlled. Perils are the causes of potential losses, such as natural causes outside of human control, human-caused events like terrorism or theft, or economic factors like changes in customer preferences.

    Original Description:

    Original Title

    RM 01 Chapter^.^

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Risk is defined as the possibility of an investment or outcome differing from expectations, including the chance of losing some or all of the original investment. Uncertainty is when the potential outcomes or probabilities are unknown, such as unknown future events. The key differences between risk and uncertainty are that risk involves known chances of outcomes, some of which may be controllable, while uncertainty involves completely unknown outcomes and events that cannot be controlled. Perils are the causes of potential losses, such as natural causes outside of human control, human-caused events like terrorism or theft, or economic factors like changes in customer preferences.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    4 views6 pages

    RM 01 Chapter .

    Uploaded by

    g1lokikondarajanahallikolar
    Risk is defined as the possibility of an investment or outcome differing from expectations, including the chance of losing some or all of the original investment. Uncertainty is when the potential outcomes or probabilities are unknown, such as unknown future events. The key differences between risk and uncertainty are that risk involves known chances of outcomes, some of which may be controllable, while uncertainty involves completely unknown outcomes and events that cannot be controlled. Perils are the causes of potential losses, such as natural causes outside of human control, human-caused events like terrorism or theft, or economic factors like changes in customer preferences.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    RM

    BY
    UZMA KOUSER
    RISK??

    • Risk is defined in financial terms as the chance that an outcome or


    investment’s actual gains will differ from an expected outcome or
    return. Risk includes the possibility of losing some or all of an
    original investment.
    UNCERTAINITY

    This is a situation where a possible outcomes or


    probability of outcomes is unknown. In other words it is
    a situation where the future events are not known.
    DIFFERENCE BETWEEN RISK AND UNCERTAINITY

    RISK Uncertainity
    1. Possibility of losing or winning something is 1. It is a situation where future events are not
    known. known.
    2. Chances of outcomes are known. 2. Chances of outcomes are not known.
    3. It can be controllable. 3. Uncontrollable.
    PERIL

    peril is a cause of loss. Peril is the possibility of cause that exposes a


    person or property to the risk of injury or damage or loss.
    TYPES OF PERILS

    a. Natural Perils: natural perils are those perils


    on which people have little control.
    b. b. Human perils: human perils includes
    causes of loss that lie within peoples control
    like terrorism, war, theft, environmental
    pollution etc…
    c. c. Economic perils: economic peril causes
    loss due to changes in economy like changes
    in customer taste and preferences,
    technological advances, currency
    fluctuations…

    You might also like