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 school based enterprise- The Falcons’ Nest Student apply the risk management process and create a PPT presentation that outlines their recommendations. 50 Point Assignment.
Identify the Risks
Assess the Risks
Create Strategy to Minimize
Manage/Control the Risks