Risk are of following types:
1) Insurable Risks: These are related to life and property against fire, theft, accidents etc.
2) Non-insurable: These are the risks whose probability cannot be determined and which cannot be insured against. For example: Fluctuations in price and demand. These are further divided into two types:
(a) Internal Risks: Those risks which arise from the events taking place within the business enterprise.
(b) Business risks: These are of a diverse nature and arise due to innumerable factors.
These risks can be insurable or non-insurable.
3) Dynamic risks: Risks which are caused by changes in the economy are known as ‘dynamic risks’. These are generally less predictable because they do not appear frequently.
