Risk is a part of human life and starts with life and continues till death. Risk refers to hazard, peril, chance of loss or injury. It implies the degree of probability of any type of loss. The risks human faces include death, accidents, fire , and business losses.
Major risks cannot be fully eliminated or cannot be averted by individuals or indiividual corprations, but can be checked by shifting them to specialized groups known as insurance companines. The leading principle underlying insurance is pooling funds collected from a large number of people as premium out of which losses are made up for individual's looses. This underlying principle is refer to as law of average or law of large number. The law suggest that thousand of people or organization are insurance but only few meet the grief. This phenomenon make possible insurance business.
By insurance certain types o risks can be cover including fire, property damages, burglry, accidents. Marine insurance is another branch of insurance which is consider which ships and their cargoes. It is undertaken by underwriters and general insurance companies. Still another branch is life assurance. It is of two type: (1) Endowment, and (2) Whole Life Assurance. In endowment policy is issued for fixed period of time. Whole life assurance calls, on other hand, for the payment of premium up until death. The insurance requires a person or a group of persons to pay a sum of money to another under the contract that is certain crimcumstances the second party will compensate for the loss sufered by first.
"NO RISKS NO PROFIT", as the popular saying goes. Business activities include risks. Element of risks is present more strongly in new businesses than the old-estabish one. Risks refers to chance 0f loss, injury or damage. It may be divided into the following catergories:
1.Business risks
2.Kinds of risks by insurance
*Insurable risks
*Uninsurable risks
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