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* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
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