a. Define the term risk. Business Risk – the potential for loss or failure.

Explain the importance of assessing risks when making personal decisions. Risks come in many forms and it is important to identify potential threats that are applicable to your business. Identifying threats early allows you to plan for and respond to the risks.

Types of Risks Identify types of risks that individuals may face as a result of personal decisions (e.g., human, operational, reputational, financial, etc.). Possible Threats: Human - from illness, death, injury, or other loss of a key individual. Operational - from disruption to supplies and operations, loss of access to essential assets, or failures in distribution. Reputational - from loss of customer or employee confidence, or damage to market reputation. Procedural - from failures of accountability, internal systems and controls; or from fraud. Project - from going over budget, taking too long on key tasks, or experiencing issues with product or service quality. Financial - from business failure, stock market fluctuations, interest rate changes, or non- availability of funding. Technical - from advances in technology, or from technical failure. Natural - from weather, natural disasters, or disease. Political - from changes in tax, public opinion, government policy, or foreign influence. Structural - from dangerous chemicals, poor lighting, falling boxes, or any situation where staff, products, or technology can be harmed.

Factors impacting risk assessments: Perception Emotions Known Information

Describe factors to consider when assessing risks (e.g., time, probability, magnitude, cost vs. benefit, physical distance, personal distance, etc.). Factors to consider when assessing risks: Time -- Is the potential negative outcome related to the risk going to occur now, or sometime in the future? Physical Distance -- Is the risk nearby or far away? Personal Distance -- Will the risk affect me or my family? Cost vs. Benefit -- Which is greater, the benefit derived from taking the risk, or the costs associated with either reducing it or remediating its effects? Probability -- Is the risk in question a rare event, or something that is likely to occur? Magnitude -- Is the resulting affect of taking the risk likely to be large or small?

Steps in assessing risks Identify steps in assessing the risks of personal decisions. There are several steps in completing a risk assessment: 1. Identify Threats – threats can come from many sources. Use different approaches and involve others to help you spot your vulnerabilities. 2.Estimate Risk – you should estimate the risk by considering the probability of the event occurring and the cost of the event. 3.Manage Risk – some risks can be managed by making changes in your business to processes and personnel responsibilities. Other risks cannot be controlled or insured and a contingency plan should be put into place. Some risks can be insured against to protect the business. 4.Review – costs and impacts may change. New risks could appear and old risks become obsolete.

Explain benefits of taking responsibility for decisions and actions. Describe negative consequences of failing to accept responsibility for decisions and actions. When you have not accepted personal responsibility, you can run the risk of becoming: Overly dependent on others for recognition, approval, affirmation and acceptance. Chronically hostile, angry or depressed over how unfairly you have been or are being treated. Fearful about ever taking a risk or making a decision. Overwhelmed by disabling fears. Unsuccessful at the enterprises you take on in life. Unsuccessful in personal relationships. Emotionally or physically unhealthy. Addicted to unhealthy substances or unhealthy behavior. Over responsible and guilt ridden in your need to rescue and enable others in your life. Unable to develop trust or to feel secure with others. Resistant to vulnerability.

c. Identify behaviors and traits needed to accept responsibility for decisions and actions. In order to accept personal responsibility you need to develop the ability to: Seek out and to accept help for yourself. Be open to new ideas or concepts about life and the human condition. Refute irrational beliefs and overcome fears. Affirm yourself positively. Recognize that you are the sole determinant of the choices you make. Recognize that you choose your responses to the people, actions and events in your life. Let go of anger, fear, blame, mistrust and insecurity. Take risks and to become vulnerable to change and growth in your life. Take off the masks of behavior characteristics behind which you hide low self-esteem. Reorganize your priorities and goals. Realize that you are the party in charge of the direction your life takes.

Identify steps in accepting responsibility for decisions and actions. accepting-personal-responsibility/ accepting-personal-responsibility/