List the five major categories of risk exposures for households and briefly describe each one in...

List the five major categories of risk exposures for households and briefly describe each one in a sentence or two.

Expert Solution

Five major categories of risk which are faced by households are as follows-

A. Health related risk- These are the risk which are faced by an individual that exposes him to various kinds of diseases and disability .

B. Economic risk -These are the risks related to various policies of Government which include tax structure would be directly affected him.

C. Environmental risk-these are the risk which are associated with the the environment in which an individual lives and grows. It could relate to pollution and depletion of resources.

D. Legal Risk- These are the risks which are faced by individual that exposes him to various kinds of legal provision and regulations. Disobedience of legal rules can attract various kinds of legal liabilities.

E. Employment risk- This is the risk associated with the in employment of an individual and it can cause major financial problem if one gets unemployed.

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List the five major categories of risk exposures for households and briefly describe each one in...

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