Meaning of Risk

We live in a risky world. Our society is full of risks. People lose their homes and personal property because of fire, flood, earthquake, hurricane and other natural disasters. There is no single unanimous definition of risk. Risk refers to the possibility that some unfavorable event will occur. Risk is traditionally defined as uncertainty. For example, the risk of cancer for smokers is present because uncertainty is present. Hence, the uncertainty surrounding potential losses is known as risk. The concept of chance of loss is related to risk. Various types of risks exist in the society. These risks have undesirable social and economic effects on the society.

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Meaning and Definition of Insurance

Insurance is the legal contract that protects people from the financial costs. Financial costs may result from loss of lifetime, loss of condition and property damage. People purchase contracts of insurance, called policies, from insurance companies. Insurance provides a means to cope with some of the risks faced by men in their everyday life. For instance laws in most countries require people who own a car to buy insurance before driving it on public roads. There is no unanimous definition of insurance. People in various discipline may define insurance in various ways. Insurance is a legal contract between insurer and insured. The insurer assures the insured in case of losses. Insurance compensates these losses.

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What is Capacity Building?

It is the basic issue and factor of development. It is a process by which poor people increase their personal and organizational capacity for their betterment and production. It is the key to success of community well-being. Capacity building is that strategy where poor people get fishing technique but not a fish. We have to develop separate special program to the targeted people, they can change their personal and institutional capacity. It is necessary to enhance their inherent capacity to decide the sustainable livelihood patterns.

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