2.0 Learning Outcomes
Learning Objectives
At the end of this chapter, students will be able to:
- Explain the different types of risk, including pure and speculative risk, subjective and objective risk, and diversifiable and non-diversifiable risk.
- Identify the characteristics of the four main types of risk from the risk quadrants: hazard, operations, strategic, and financial risks.
- Discuss the upside (potential gain) and downside (potential loss) associated with each type of risk.
- Measure hazard risks using frequency and severity and implement strategies to prevent and reduce losses.
- Assess financial risks like market and credit risks and strategic risks influenced by economic, demographic, and political factors using appropriate risk indicators.
