Page 29 - EBOOK RISK MANAGEMENT

3.3.1 Personal Risks

Personal risks are risk that affecting individuals and families. Any loss occuring can

lead to loss of earnings or reduction in personal finances. There are four major

types of personal risks which is:

Risk of premature death
•Death of breadwinner can cause financial burden to the family

Risk of poor health
•Illness or disability from unhealthy lifestyle may result to higher medical
cost

Risk of unemployment

•Loss of earned or employment income

Risk of longevity
•Insufficient income during retrenchment or retirement

Figure 3.4 Major Types of Personal Risks

3.3.2 Property Risks

Property risks affects property owners that own physical assets. These risks include

loss or damage to property from various types of perils. As an example, property
risks from fire, theft, flood or other catastrophic risks. There are three types of loss

related to property risks:

Direct loss

Property Risks Indirect loss

Extra expenses

Figure 3.5 Types of Property Risks

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