In the first article of Understand Insurance section of this blog, What is risk?, we have defined risk as uncertainty of loss. In insurance context, losses are any bad or unpleasant events that can be measured financially. Risk is basically a state that contains two possibilities, namely a loss or nothing, at one point in … Continue reading 4. How risks turn into loss?
We closed second article of this series with three choices of actions available in dealing with risks, namely to ignore, to retain and to transfer. Earlier part of the same article discussed that risk can be divided into four categories based on a combination of frequency and severity. Let's continue our discussion to the risks … Continue reading 3. Holding hot potato: transfer or avoid
We end the first article of this series What is risk? with a few questions about how we should react to the risks that we are always facing all the time. Should we keep worrying too much to the level we are paranoid enough for not doing anything? Or, should we just be a complete … Continue reading 2. Categorizing risks
We use the word "risk" in everyday conversations. "I don't want to fly with **** air anymore, it's too risky", "I just pay, the risk is low", "What is the risk of not doing this procedure, Doc?", etc. But, what is risk actually? From above sample expressions, we can see that the word risk is … Continue reading 1. What is risk?