The nature of commercial, financial and physical risk is explored. In addition to the theory of risk, the way in which insurance has evolved to deal with this important aspect of the economic environment is studied in depth. Case studies are used to illustrate points of practical relevance. Emphasises the mathematical and statistical foundations of the discipline. Topics in the area of risk include, risk premia, insurance ratings, simulations of risky environments, physical risk, and death. Insurance is approached as a natural commercial response to risk with inference from insurance data, general insurance, motor insurance, very large risks, and life assurance.