1. Risk Management Marketing I Competency: #95- Explain the nature and types of risk to businesses " Risk comes from not knowing what you're doing." - Warren Buffett

2. What is “Risk”…as related to business?? Probability of damage, loss, injury, or liability associated with activities of a business operation

3. What is Risk Management? CONTINUOUS PROCESS where businesses identify risks, assess risks, and develop strategies to manage risks to the business.

4. Types of Risks  Economic  Property  Liability

5. Economic Risks Results in financial loss Examples: Demographic changes with labor base Economy and business cycle changes Competition Natural Disasters Human Risks (shoplifting/embezzlement)

6. Property Risks Financial loss occurring as result of personal or business property(including buildings, vehicles, or money) Examples: Fire Theft Forced sale of property Loss of rental income

7. Liability Risks Potential for loss incurred to others resulting from use of product or service or business operations of the company. Examples: Amusement parks/rides Snow and ice covered walks for businesses Products causing unintended injuries/death (faulty products or equipment)

8. Risk Management and The Falcons Nest Class Activity Students work in small groups to identify three risks to the student based enterprise. Student apply the risk management process and create a PPT presentation that outlines their recommendations. 50 Point Assignment. I. Identify the Risks II. Assess the Risks III. Create Strategy to Minimize IV. Manage/Control the Risks