Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter 99-1 Risk Management Issues Prepared by Ron Knowles Algonquin College chapter 9 9

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter 99-2 Plan first. Good planning can help the entrepreneur avoid ugly and unpleasant surprises. You can't predict surprises in your business plan, but you can demonstrate that you have accounted for them. Chapter 9 will help you:  Anticipate potential problems and minimize their effects. Business Plan Building Block chapter 9 9

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter 99-3 Learning Opportunities  Develop a Plan B to minimize the ill effects of unfortunate surprises.  Determine your insurance needs and costs.  Draft a health and safety policy and action plan.  Develop a list of precautions that will help minimize the opportunities for employee dishonesty.  Understand the main characteristics of patents, copyrights and trademarks.  Prepare a 12-month start-up checklist.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter 99-4 Plan B Checklist  Advisors  Organization  Licenses/Permits  Location  Auto  Equipment  Fixtures  Supplies  Inventory  Advertising/ Promotion  Banking  Employees

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter 99-5 Calculating Your Insurance Needs In general, the following risks can be covered by insurance: Personal injury Employment practices Loss to the business caused by death or disability Loss or damage of property Loss of income resulting from interruption of business Consequential losses Auto What type of business insurance will you need? Check out Box 9.4. In general, the following risks can be covered by insurance: Personal injury Employment practices Loss to the business caused by death or disability Loss or damage of property Loss of income resulting from interruption of business Consequential losses Auto What type of business insurance will you need? Check out Box 9.4.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter 99-6 Occupational Health and Safety (OHS) Two basic levels of OHS legislation:  Federal  Provincial OHS legislation outlines:  Responsibilities of owners, supervisors, and workers

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter 99-7 Occupational Health and Safety (OHS) – Legal Requirements Legal requirements can be grouped into four broad categories: 1.Government, employee and employer responsibilities 2.Joint Heath and Safety Committees (JHSC) 3.Workplace Hazardous Materials 4.Due Diligence

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter 99-8 Employee Dishonesty Some Examples Cash register vulnerability Cheque deception Shoplifting Credit card fraud Credit card fraud Bookkeeping theft Counterfeit money Burglary Robbery Fitting room theft Fraudulent Refunds

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter 99-9 Patents and Copyrights patentA patent is a federal government grant that gives an inventor exclusive rights to his or her inventions. Patents cover new inventions, or any new and useful improvement of an existing invention. copyrigh tA copyrigh t is the exclusive right to copy a creative work or allow someone else to do so. Copyrights provide protection for artistic, dramatic, musical or literary works.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter Trademarks trademarkA trademark is a word, symbol or design, or a combination of these, used to distinguish the goods or services of one person or organization from those of others in the marketplace. Three basic types of trademarks are: 1.ordinary marks 2.certification marks 3.distinguishing guise

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter Plotting Your Future Checklist  What operational goals and objectives do you want to achieve?  What risks and challenges does your business face, and how will you address each one?  Develop a start-up schedule beginning twelve months from the launch.  What are the major cash drains in your business?  What types of insurance and employee bonding will you have for your business?  Do you have a health and safety policy in place?  Do you plan to protect your idea, product, or service?