{Risk Management

Entrepreneurship/Marketing

Managing risk that may affect your business or your lifestyle.

Types of Risks Crimes

Robbery, employee theft, and shoplifting Stolen Credit Cards Bad checks Computer Crime

Natural Disasters Hurricanes, Tornados, Floods, Fires, Earthquakes

Accidents and Injuries Can be negligence on behalf of the business or a

shear accident.

What is risk management?

Avoiding the risk Reducing the risk

Designing areas with risk reduction in mind

Educating employees on how best to reduce risk

Checking your equipment responsibly Test equipment and products under

extreme conditions so you are sure they will operate safely

Testing cars

How do we manage risk?

Transferring risk to another person or company

Property Insurance Casualty Insurance Life Insurance Worker’s Compensation

Risk Retention Taking the risk yourself

Company cannot get insurance Company insures itself To do this company must be large and have huge

capital in the bank to afford this type of insurance.

Managing risk con’t

Business interruption insurance Liability/Casualty insurance Errors and omissions insurance Life insurance Worker’s Compensation Product liability insurance Property insurance Fidelity Bonds Performance bonds

Assignment on RiskDefinitions-define and give an example of a senario when this type of insurance can be used-turn in