Canadian Accredited Insurance Broker (CAIB) One Practice Exam

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Which of the following is NOT a category of risk?

Property risk
Liability risk
Investment risk
Personal risk

The correct answer is: Investment risk

Investment risk is indeed not traditionally categorized under the typical classifications used in insurance and risk management. The common categories of risk usually focus on aspects that can directly impact individuals or businesses operationally and legally, such as property risk, which involves potential damage or loss of physical assets; liability risk, which concerns the legal obligations that can arise from causing harm to others or their property; and personal risk, which pertains to risks affecting the individual, such as health or life insurance needs. Investment risk typically refers to risks associated with financial investments, including the potential for loss of value or income. While it is an important consideration in financial planning and portfolio management, it does not fit within the categories typically used to classify risk in the insurance industry, which primarily deals with tangible and legal aspects of risk exposure.