How does objective risk differ from subjective risk?

Objective risk is also known as the degree of risk, it can be defined as the deviation of the actual loss from the expected loss. It increases or decreases due to a decrease or increase in the amount of exposure. This is inversely related to the number of exposures. While, on the other hand, subjective risk is based on the uncertainty of a person’s mental state.

Remember: The process of learning a person lasts a lifetime. The value of the same knowledge for different people may be different, it is determined by their individual characteristics and needs. Therefore, knowledge is always needed at any age and position.