Monday, December 14, 2015

The RISK is the risk of unexpected losses

A further disadvantage of the comparative analysis of statistical data about risk is that summary statistics can mask important and defining characteristics of risk. Where there is uncertainty or disagreement with facts, representations of the dot (singular) estimates may inspire overconfidence. Since people are especially interested in potential catastrophic accidents, it is necessary to consider also the probability and magnitude of other possible losses. For example, people's attitude to risk is influenced by the neglect of the statistical the summaries of information on the consequences of possible negative events, about the threat to future generations, about the ease of reducing risk and more.

The RISK is the risk of unexpected losses expected profits, revenue or property, funds, other resources in connection with a random change in the conditions of economic activity, adverse circumstances. The risk is measured by the probability of occurrence of a certain level of losses. The most dangerous risks with tangible probability of losses exceeding the amount of expected profit. Decided to allocate the following types of risk: banking risk, commercial banks; currency risk associated with unexpected changes in foreign currency exchange rates; credit the risk associated with the risk of no return, incomplete return or late return of loans; political risk due to the political changes and military conflicts on economic processes; interest rate — the risk associated with unforeseen changes in interest rates.

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