According to Paul Hopkin, in Fundamentals of Risk Management, there are four basic types of risk: Compliance (or mandatory) risk; Hazard (or pure) risks; Control (or uncertainty) risks; and Opportunity (or speculative) risks. With these four possibilities in mind let's discuss three possible outcomes under each type, relative to owning a car/automobile, I'll give you the first thought: Compliance (or mandatory) risk: Insufficient and/or inadequate 3rd-party car insurance ? ? Hazard (or pure) risks: ? ? ? Control (or uncertainty) risks: ? ? ? Opportunity (or speculative) risks