The likelihood of a specific occurrence affecting a given business or investment. Unlike market or systemic risk, which affects all entities within the same class, event risk is particular to an individual company or portfolio.
Loss exposure in insurance refers to areas in which the risk of loss exists. Four primary loss risk areas are property, income, legal vulnerability, and key personnel within an organization.
Static risk refers to risks with a constant level of uncertainty regarding the outcome or payoff. This type of risk is not influenced by market fluctuations or evolving factors and typically remains unchanged over time.
Technological risk is the inherent risk in project financing schemes that the newly designed plant or equipment will not operate to spec, and the broader risk to a business from changing technology.
An uninsurable risk is a risk that is considered too extreme or too difficult to quantify, thereby making it undesirable for insurance companies to provide coverage.
