Question: Risk management begins with identifying risk(s) through scenario analysis, which is often used to identify potential risk exposures so that their financial consequences can be

Risk management begins with identifying risk(s) through scenario analysis, which is often used to identify potential risk exposures so that their financial consequences can be quantified and managed using appropriate risk management techniques.

(a) Compare the difference between pure risk and speculative risk.

(b) Discuss two (2) examples of pure risk and speculative risk.

(d) Examine three (3) possible scenarios leading to personal risk and business risk respectively.

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