ABSTRACT
Risk means many things to many people. The dictionary defines risk as "exposure to the chance of injury or loss." In terms of insurance it defines risk as "the hazard or chance of loss." Rowe (1994) defines risk as the downside of a gamble, which is described in terms of probability. Although there has been considerable debate about the proper definition for risk, there is general agreement that risk always involves two characteristics:
D Uncertainty - The event that characterizes the risk may or may not happen; i.e., there is no I 00% probable risk;
D Loss - If the risk becomes a reality, unwanted consequences or losses will occur.
