| A | B |
|---|
| risk | uncertainty as to economic loss |
| peril | cause of loss |
| hazard | increases chance of loss or severity of loss |
| pure risk | will only experience loss |
| speculative risk | may experience gain or loss |
| dynamic risk | loss due to changing society |
| static risk | state of nature |
| objective risk | measurable, quanitfiable risk |
| subjective risk | risk as perceived by individual |
| insurance | method of risk transfer |
