What type of risk is NOT influenced by personal feelings or opinions?

Prepare for the FBLA Insurance and Risk Management Test with comprehensive study guides and mock examinations. Understand key concepts in insurance and risk management to succeed. Get exam ready!

The correct choice is objective risk, which is defined as risk that can be measured and quantified based on factual data rather than personal feelings or opinions. This type of risk is often derived from statistical analysis and established historical data, making it less subjective and more reliable for decision-making.

Objective risk emerges from external factors and is determined through empirical evidence and established theories. For example, the likelihood of an event such as a car accident can be objectively assessed based on past accident statistics, traffic patterns, and other measurable criteria.

In contrast, subjective risk is heavily influenced by personal perception, emotions, or individual experience; it varies from person to person and is not based solely on objective data. Statistical risk involves the use of statistical methods to predict the likelihood of risks occurring but may still include subjective interpretations of data. Inherent risk refers to the exposure to risk that exists naturally in the absence of any controls or mitigation measures, which can also be perceived differently based on individual perspectives.

Overall, objective risk stands out as the type that relies strictly on measurable data, making it an essential concept in risk management practices.

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