Types of insurance risks - SS2 Commerce Past Questions and Answers - page 1
Which type of risk affects the overall market or economy as a whole?
Partial risk
Fundamental risk
Systematic risk
Which type of risk is unique to a particular investment or business?
Systematic risk
Partial risk
Fundamental risk
What can be used to minimize or eliminate partial risks?
Market trends
Diversification
Political events
Which type of risk can be reduced through proper risk management strategies?
Partial risk
Fundamental risk
Unsystematic risk
Which type of risk is beyond the control of individual investors or businesses?
Fundamental risk
Partial risk
Unsystematic risk
Give an example of a fundamental risk.
Examples may include recession, inflation, interest rate changes, or geopolitical conflicts.
How can partial risks be managed?
Partial risks can be managed through diversification, proper risk management strategies, or company-specific actions.