Professional Sales & Marketing Management Concepts Risk Management BMAS-FinMgmt-PowerPoint6a.ppt Professional Sales & Marketing Management Concepts Risk Management

Bellwork - Objectives Define terms used in risk management. Identify the terms used in risk management. List the terms used in risk management. Explain the terms used in risk management. Apply the terms used in risk management.

Vocabulary Risk Management – The process of analyzing exposure to risk and determining how to best handle such exposure. Risk – An uncertain event or condition that has a positive or negative effect. Risk Management Plan – A document to foresee risks, to estimate the effectiveness, and to create a response plan. Risk Propensity – Extent to which a decision maker is willing to speculate when making a decision. Escalation of Commitment – The condition in which a decision maker becomes so committed to a course of action that she/he stays with it even when it appears to have been wrong.

Summary On the notes handout, summarize in one sentence the most important aspect of today’s lesson. Share with your partner. Initial your partner’s summary if it was meaningful and in one sentence. Be prepared to share with the class.