Chapter 1, Page 21
Exercise 3

Give an example of a situation that entails exposure but not uncertainty, and hence no risk.

Many answers are possible for this exercise. Consider the following:

A farmer’s crops die in the field due to a prolonged drought. The farmer is exposed to the drought, but he is not uncertain. The existence of the drought and its consequences are certainties to him. Exposed but not uncertain, the farmer does not face risk.