Upload
stephanie-fowler
View
217
Download
1
Tags:
Embed Size (px)
Citation preview
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 MANAGEMENTAKA: 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