Time
5 hours 14 minutes
Difficulty
Intermediate
CEU/CPE
10

Video Description

This lesson focuses on the types of risks and the characteristics that accompany those risks:

  • Pure Risk: the kind of risk you can get insurance for (i.e. flood and fire insurance)
  • Business Risk: cannot be insured (i.e. Not receiving the amount of sales projections you'd expected).
  • Uncertainty: Taking what you know about a topic and seeing what risks are involved

There are three types of risk takers: - Risk seeker: someone who enjoys risk

  • Risk adverse: avoid risk at all costs
  • Risk neutral: could go either way, middle ground

[toggle_content title="Transcript"] I want to go over three types of risks. There is pure risk, business risk, well, this is not a type of a risk but its uncertainty. Pure risk is risk that you can get insurance for. Flood insurance, fire insurance...anything that you can insure is considered a pure risk. A business risk is not insurable. Business risk is not receiving the amount of sales projections that you are expecting. Uncertainty is taking the knowns and the unknowns and trying to figure out how much do you know about a topic. Uncertainty could be like there are a lot of unknowns about it and you won't face it until you get on to the project. When dealing with risks, you have to understand there are three types of risk...risk characteristic. Risk seeker, risk averse and risk neutral. A risk seeker, to me who I think about a risk seeker is Richard Branson. Someone who is willing to take risks and they enjoy it. They are go after those types of projects. Risk averse, they avoid risks at all costs. Think of it like, companies that are not willing to take a risk for example going overseas. There might be a lot of money to be made overseas but there is a risk associated with that and they are going to avoid it at all costs. Risk neutral, they can go either risk seeker or risk averse. They are middle ground so depending on what the situation on the ground is that is how they are going to seek out risks. [/toggle_content]

Video Transcription

00:04
So I want to go over three types of risks. There is pure risk
00:08
business risk.
00:09
Well, this isn't a type of risk, but it's, uh,
00:12
on Cerny soap. Your risk is
00:15
risk that you can get insurance for flood insurance, fire insurance, aids and that you could ensure is considered be appear. Risk. A business risk is not insurable.
00:26
Business risk could be
00:28
not receiving the amount of sales projections that you were expecting.
00:32
Uncertainty is taking the knowns and unknowns and trying to figure out,
00:37
um,
00:39
how much? How much do you know about a topic
00:42
uncertain? E, um, could be like there's a lot of unknowns about it and you won't face until you get to that point of the project.
00:50
So when dealing with risk,
00:51
you have to understand that there are three types of risk. Ah,
00:55
risk characteristics. So there's risk seeker, risk averse and risk neutral.
01:00
A risk seeker
01:03
to me who I think of a risk seeker is Richard Branson, someone who's willing to take risk and ah, they enjoy it. They go after those type of projects,
01:12
risk averse.
01:14
They avoid risk. It all costs. So,
01:18
um, thinking of like
01:19
companies that are not going to take a risk, for example, of going overseas. Um,
01:26
there might be a lot of money to be made overseas, but there's a risk associated with that.
01:30
And they're gonna avoid at all costs
01:33
risk neutral. It could go either risk seeker or risk averse their middle ground. So, um, depending on what the situation is, that's how they're gonna seek out risk.

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