1. ****************** Chapter 17 Risk Management, Insurance, and Crime Prevention McGraw-Hill/IrwinCopyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

2. ****************** Risk Management, Insurance, And Crime Prevention Defining & Coping With Risk Defining & Coping With Risk Insurance & Risk Insurance & Risk Choosing An Insurer Choosing An Insurer Reducing Risk Reducing Risk Safeguarding Against Theft Safeguarding Against Theft Protecting Employees Protecting Employees 17 - 2

3. ****************** 17 - 3 McGraw-Hill/Irwin Types Of Risk  Pure- Unpredictable  Speculative- Voluntary

4. ****************** 17 - 4 Coping With Risk  Avoidance  Prevention/Control  Transfer  Assumption- Self-Insurance Lawrence Lawry/Getty Images

5. ****************** 17 - 5 Determine Insurance Need What Will Happen If:  I Die  Fire  Theft/Embezzlement  Robbery  Settlement  Unauthorized Information Steve Cole/Getty Images

6. ****************** 17 - 6 Types Of Insurance  Fire  Business Interruption  Casualty  Product/Service Liability  Workers’ Compensation  Group Health/Life  Business Owner  Fidelity/Surety Bonds PhotoDisc/Getty Images

7. ****************** 17 - 7 Coinsurance “…having the business buy insurance equal to a specific percentage of property value.”

8. ****************** 17 - 8 Actions To Improve Safety and Reduce Premiums  Involve Employees  Establish Communications  Companywide Participation  Safety Awards  Exciting Program  Be Watchful

9. ****************** 17 - 9 Small Business Health Care (Employee Contribution With)

10. ****************** 17 - 10 Red Flags On Agent Selection  Delayed Responses  Routine Answers  Delayed Refunds  Hand-Delivered Policy  Claim More Expensive Than Deductible  Delay Tactics  Attempts To Minimize Damage  Secret Claim Or Settlement  Replace Old Flawed Policy

11. ****************** 17 - 11 Criteria For Insurer Comparison  Financial Stability & Safety  Specialization  Tailor Policy  Cost Of Protection PhotoLink/Getty Images

12. ****************** 17 - 12 Insurance Renewal  Agent = Minimize Premium  Boost Deductible  Shop Several Agents  Professional Organization  Special-Risk Pools  Self-Insurance/Coinsurance PhotoLink/Getty Images

13. ****************** 17 - 13 Agent’s Services  Devote Time To Your Problems  Exposure To Loss  Recommend Insurance & Loss Prevention  Offer Alternatives

14. ****************** 17 - 14 Crime Prevention For Protection  Zero-Tolerance Policy  Screen  Train  Defuse Disputes  Check Security  Terminate With Care

15. ****************** 17 - 15 OSHA Guidelines To Prevent Robbery Adequate Lighting Video Cameras Increase Night Staff Alarms Bulletproof Glass Royalty-Free/CORBIS

16. ****************** 17 - 16 Reducing Chances Of Robbery  Modify Store Layout  Secure Entrances  Use Dogs  Control Cash  Redesign Surroundings Don Farrall/Getty Images

17. ****************** 17 - 17 Sources Of Inventory Theft

18. ****************** 17 - 18 Amount Of Theft- 2003 In $ Billon

19. ****************** 17 - 19 Preventing Theft MirrorsCameras/Monitors Noise Activators Employee Honesty Tests Security Guards Security Audits Spot Checks Visible Surveillance Physical Inventory Checks Ryan McVay/Getty Images

20. ****************** 17 - 20 White Collar Crime “…committed by managerial, professional, and technical employees.”

21. ****************** 17 - 21 Types Of White Collar Crime Falsification Of Accounts Fraudulent Computer Use Bribing Officials Collusion Sale Of Proprietary Information Sabotage

22. ****************** 17 - 22 Computer Crimes Intentional Destruction Of Data Fraudulent Use Getty Images

23. ****************** 17 - 23 Minimize White Collar Crime  Track Cost  Increase Budget  Ban Criminals  Crack Down On Tax Avoidance  Restore Rights  Democratize  Rein In Pay  Regulate Trading  Expand Disclosure  End Conflicts Of Interest  Fix Pensions  Foster Discussion

24. ****************** 17 - 24 Document Security  List of Authorized Personnel  No Permission to Remove Sensitive Document from Premises

25. ****************** 17 - 25 Workplace Safeguards  Guards Over Moving Tools  Devices to Protect Hands from Machines  Protective Gear  Warnings  Medical Treatment