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Dynamic Risk
(redirected from Dynamic Risks)

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Dynamic Risk
The risk of loss resulting from changes in culture, taste or policy. For example, if one sells only black socks in the United States, one takes the dynamic risk that no one will buy black socks after Labor Day. Likewise, if one sells for-profit insurance, one takes the dynamic risk that the government will ban this type of insurance. It is related to political risk, but primarily connotes cultural changes.


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