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1. Pure and speculative. A pure risk is a condition in which there are only possibilities of loss or no loss. The pure risks are of three types.
• Liability risks. These are risks where one may be held responsible if they do something that may result in bodily injury or property damage to someone else.
• Personal risks. These are risks that may affect a person directly.
• Property risk. This involves property damage or lost due to some causes due to physical damage, destruction or theft of property.
Speculative risk is a situation in which there is either profit or loss.
2. Fundamental and particular risk. A fundamental risk is a risk that has an effect on the whole economy or large number of people or even a part of an economy.
A particular risk is a risk that affects only some individual and not the entire society.
3. Enterprise risk. This is a type of risk which comprises of all risks faced by a business. Enterprise risks may be categorized as follows.
• Strategic risks. These risks include internal risks like those from adverse business decisions or improper implementations of those decisions, poor leadership or ineffective governance and oversight.
• Financial risks. These are activities that can lead to possible loss of funds by the business. They include credit risks, liquidity risks, interest rate risks, foreign exchange risks and investment portfolio risks.
• Operational risks. These risks affects the business internal day to day operations. Examples include transaction and fraud risks.
skilled writter answered the question on April 27, 2018 at 17:45
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