RISK MANAGEMENT

RISK THE POSSIBILITY OF FINANCIAL GAIN OR LOSS OR PERSONAL INJURY. WHAT WOULD BE AN EXAMPLE OF FINANCIAL LOSS? CATEGORIES OF RISK NATURAL RISK WEATHER CONDITIONS THAT CANNOT BE AVOIDED HUMAN RISK DISHONESTY (AND INCOMPETENCE) OF THOSE INVOLVED: CUSTOMER, EMPLOYEE, ETC. ECONOMIC RISK CHANGES IN THE BUSINESS ENVIRONMENT: ECONOMY

CLASSIFICATION OF RISK GAIN OR LOSS RISK DO YOU KNOW YOU WILL MAKE MONEY? SPECULATIVE RISK: WHAT INVESTORS ENDURE WHEN INVESTING IN A NEW COMPANY PURE RISK: OCCURRENCES WHERE THERE IS NO POSSIBILITY OF MONETARY GAIN CONTROLLABLE RISK LOSS THAT CAN BE PREVENTED OR MINIMIZED INSURABLE RISK PREDICTABLE LOSS AND CAN BE ESTIMATED

RISK MANAGEMENT PREVENTING, REDUCING OR LESSENING THE NEGATIVE IMPACTS OF RISK MARKETERS MUST DEVELOP RISK MANAGEMENT STRATEGIES TO ENSURE ALL POSSIBLE RISKS ARE ADDRESSED. HOW CAN CHOOSING THE WRONG PLAYER BE COSTLY FOR A TEAM? NFL COMBINE: 3 DAY JOB INTERVIEW PROCESS WHERE PLAYERS ARE OBSERVED, PHYSICALLY TESTED, DRUG TESTED, AND PERSONALLY INTERVIEWED BY OWNERS, MANAGERS, AND COACHES.

RISK MANAGEMENT AKA: STRATEGIES FOR MANAGING RISK RISK AVOIDANCE LOOK AT ALL POSSIBLE SITUATIONS AND FIND WAYS TO MINIMIZE AND IF POSSIBLE, AVOID ALL RISK LIABLE THE BUSINESS IS LEGALLY RESPONSIBLE FOR DAMAGES AND MIGHT HAVE TO PAY FOR THE MEDICAL COSTS AND OTHER LOSSES SUFFERED BY AN INJURED PERSON RISK INSURANCE CONTRACT WITH INSURANCE COMPANIES AND OTHER FINANCIAL INSTITUTIONS TO COVER RISK OF FINANCIAL LOSS EG. LOSS FROM A FIRE, INJURY, THEFT

RISK MANAGEMENT CONTINUED RISK TRANSFER TRANSFERRING THE RISK TO ANOTHER COMPANY OR TO THE CUSTOMER EXAMPLES? EXCEPTIONS? RISK RETENTION UNINSURABLE RISKS THAT THE BUSINESS OWNER MAY/WILL HAVE TO ENDURE EXAMPLES?

SOMETHING TO PONDER… SHOULD PROFESSIONAL ATHLETES BE RESPONSIBLE FOR THEIR OWN SAFETY OR IS IT THE JOB OF THE TEAM TO PROTECT THEM FROM INJURY? WHAT TYPES OF RISK ARE INVOLVED? HUMAN RISK LOSS RISK CONTROLLABLE AND (DEPENDING ON THE CIRCUMSTANCE) UNCONTROLLABLE RISK HOW CAN YOU MINIMIZE THE RISK? RISK AVOIDANCE RISK TRANSFER RISK RETENTION

REVIEW WHAT IS CONTROLLABLE RISK? A RISK THAT CAN BE PREVENTED OR ITS LIKELIHOOD OF THE RISK OCCURRING IS REDUCED WHAT IS AN EXAMPLE OF HUMAN RISK? EMPLOYEE/CUSTOMER DISHONESTY, CHECK WRITTEN WITHOUT FUNDS, UNSKILLED LABORERS THREE CLASSIFICATIONS OF RISK? GAIN/LOSS RISK, INSURABLE RISK AND CONTROLLABLE RISK WHAT ARE THE 4 STRATEGIES OF MANAGING RISK? RISK AVOIDANCE, RISK INSURANCE, RISK TRANSFER, RISK RETENTION