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Chapter 5

Risk Tolerance:

How Do You

Personally

Define Risk?

I

n life, there is no such thing as a guarantee. Everything we do always has an element of risk, even everyday actions like driving to work or

crossing the street.

I googled the definition of risk, and this definition came up from thefreedictionary.com:

risk (rsk)

n.

1. The possibility of suffering harm or loss; danger.

2. A factor, thing, element, or course involving uncertain danger; a hazard: “the usual risks of the desert: rattlesnakes, the heat, and lack of water” (Frank Clancy).

3.

a. The danger or probability of loss to an insurer.

b. The amount that an insurance company stands to lose.

4.