Critical or Catastrophic risk - Where losses are of such a magnitude; that may result in total loss or bankruptcy.Example : An earthquake that completely destroys a village
Major Risk - In which the possible losses may result in serious financial losses, compelling the firm to borrow in order to continue operations.
Marginal or Insignificant risk - Where the possible losses are insignificant and can be easily met from an individual or a firms existing assets or current income
Static risks have a regular pattern of occurrence over time and can be reasonably predicted. They are thus easier to insure. Typically such risks are caused by natural events like fire, earthquake, death, accident and sickness
Dynamic Risk dont have a regular pattern of occurrence and cannot be predicted like static risks. Again these risks often have vast national and social consequences and may affect a large section of people. Unemployment, inflation, war and politica
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