Insurance professionals use the term peril to associate the cause of loss. And they use the term hazard to identify the condition that cause or increase perils. While these can be understood as risk, they cannot be termed as risk since the term ‘risk’ in itself is defined as an unplanned event that causes financial loss.To put it simply, a risk is a possibility of a loss. A peril is the cause of a loss. A hazard is a condition that increases the possibility of a loss.