Danger vs. Risk vs. Peril

[shahin_67]

Hi guys,

As alluded, what's the difference? I just came across a test and it is:

Since you live in a region of tornadoes and hurricanes, think about insuring your property for all... .
(a)dangers (b)risks (c)threats (d)uncertainties

Of course (b) is picked as the correct answer.
I would appreciate it if someone would explain the slight discrepancy between the words.

Thanks ahead,

 

[SoothingDave]

You insure against risk. To take a risk means that you are facing the possibility of loss. When you build a home, you are "gambling" against the small odds that you will lose your home because of where it is located. Insurance covers you if those odds play out against you.

 

[konungursvia]

Risk is the name given in business to calculations of dangerous probabilities. It is quantified. The others are not.