Risk Management 14-1 Overview of Risk Management 14-2 Insurable Risks 14-3 Uninsurable Risks 14
LESSON 14-1 Overview of Risk Management <ul><li>Goals </li></ul><ul><li>Identify the types of risks facing businesses. </l...
Key Terms <ul><li>risk </li></ul><ul><li>economic risk </li></ul><ul><li>personal risk </li></ul><ul><li>property risk </l...
IDENTIFYING RISKS <ul><li>Types of risks </li></ul><ul><ul><li>Economic and non-economic risks </li></ul></ul><ul><ul><li>...
>>  C H E C K P O I N T <ul><li>What is a risk? </li></ul>
DEALING WITH RISKS <ul><li>Avoid the risk </li></ul><ul><li>Transfer the risk </li></ul><ul><li>Insure the risk </li></ul>...
POSSIBLE WAYS  TO DEAL WITH RISK Complete the activity with full responsibility Assume Purchase insurance to pay for any l...
>>  C H E C K P O I N T <ul><li>Identify four ways that business can deal with risks. </li></ul>
LESSON 14-2 Insurable Risks <ul><li>Goals </li></ul><ul><li>Recognize important insurance concepts. </li></ul><ul><li>Desc...
Key Terms <ul><li>insurers </li></ul><ul><li>insured </li></ul><ul><li>policyholder </li></ul><ul><li>insurance policy </l...
PURCHASING INSURANCE <ul><li>Insurance basics </li></ul><ul><li>Insurance companies </li></ul><ul><li>Insured losses </li>...
>>  C H E C K P O I N T <ul><li>What information should be considered when selecting an insurance company? </li></ul>
BUSINESS INSURANCE <ul><li>Insuring personnel </li></ul><ul><ul><li>Health insurance </li></ul></ul><ul><ul><li>Disability...
>>  C H E C K P O I N T <ul><li>What are the three major areas that can be covered by business insurance? </li></ul>
LESSON 14-3 Uninsurable Risks <ul><li>Goals </li></ul><ul><li>Describe why some business risks are uninsurable. </li></ul>...
Key Terms <ul><li>property rights </li></ul><ul><li>counterfeiting </li></ul>
IDENTIFYING RISKS <ul><li>Types of uninsurable risks </li></ul><ul><ul><li>Economic conditions </li></ul></ul><ul><ul><li>...
MANAGING RISKS <ul><li>Inform everyone in the business of the types of risks that are particularly important to their part...
>>  C H E C K P O I N T <ul><li>What are several things businesses can do to manage risks? </li></ul>
RISKS IN INTERNATIONAL BUSINESS <ul><li>Strategies for reducing risk </li></ul><ul><li>International property rights </li>...
>>  C H E C K P O I N T <ul><li>Why do U.S. companies have difficulty enforcing intellectual property rights in some inter...
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Itb Chap 14

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Itb Chap 14

  1. 1. Risk Management 14-1 Overview of Risk Management 14-2 Insurable Risks 14-3 Uninsurable Risks 14
  2. 2. LESSON 14-1 Overview of Risk Management <ul><li>Goals </li></ul><ul><li>Identify the types of risks facing businesses. </li></ul><ul><li>Describe ways that businesses can deal with risks. </li></ul>
  3. 3. Key Terms <ul><li>risk </li></ul><ul><li>economic risk </li></ul><ul><li>personal risk </li></ul><ul><li>property risk </li></ul><ul><li>liability risk </li></ul><ul><li>pure risk </li></ul><ul><li>controllable risk </li></ul><ul><li>insurance </li></ul>
  4. 4. IDENTIFYING RISKS <ul><li>Types of risks </li></ul><ul><ul><li>Economic and non-economic risks </li></ul></ul><ul><ul><li>Pure and speculative risks </li></ul></ul><ul><ul><li>Controllable and uncontrollable risks </li></ul></ul><ul><ul><li>Insurable and uninsurable risks </li></ul></ul>
  5. 5. >> C H E C K P O I N T <ul><li>What is a risk? </li></ul>
  6. 6. DEALING WITH RISKS <ul><li>Avoid the risk </li></ul><ul><li>Transfer the risk </li></ul><ul><li>Insure the risk </li></ul><ul><li>Assume the risk </li></ul>
  7. 7. POSSIBLE WAYS TO DEAL WITH RISK Complete the activity with full responsibility Assume Purchase insurance to pay for any losses Insure Find another business to complete the activity Transfer Choose not to complete the risky activity Avoid Activity Method
  8. 8. >> C H E C K P O I N T <ul><li>Identify four ways that business can deal with risks. </li></ul>
  9. 9. LESSON 14-2 Insurable Risks <ul><li>Goals </li></ul><ul><li>Recognize important insurance concepts. </li></ul><ul><li>Describe several types of business insurance. </li></ul>
  10. 10. Key Terms <ul><li>insurers </li></ul><ul><li>insured </li></ul><ul><li>policyholder </li></ul><ul><li>insurance policy </li></ul><ul><li>premium </li></ul><ul><li>claim </li></ul>
  11. 11. PURCHASING INSURANCE <ul><li>Insurance basics </li></ul><ul><li>Insurance companies </li></ul><ul><li>Insured losses </li></ul>
  12. 12. >> C H E C K P O I N T <ul><li>What information should be considered when selecting an insurance company? </li></ul>
  13. 13. BUSINESS INSURANCE <ul><li>Insuring personnel </li></ul><ul><ul><li>Health insurance </li></ul></ul><ul><ul><li>Disability insurance </li></ul></ul><ul><ul><li>Life insurance </li></ul></ul><ul><li>Insuring property </li></ul><ul><li>Insuring business operations </li></ul>
  14. 14. >> C H E C K P O I N T <ul><li>What are the three major areas that can be covered by business insurance? </li></ul>
  15. 15. LESSON 14-3 Uninsurable Risks <ul><li>Goals </li></ul><ul><li>Describe why some business risks are uninsurable. </li></ul><ul><li>List the strategies a company can use to reduce the risks of doing business internationally. </li></ul>
  16. 16. Key Terms <ul><li>property rights </li></ul><ul><li>counterfeiting </li></ul>
  17. 17. IDENTIFYING RISKS <ul><li>Types of uninsurable risks </li></ul><ul><ul><li>Economic conditions </li></ul></ul><ul><ul><li>Consumer demand </li></ul></ul><ul><ul><li>Competitors’ actions </li></ul></ul><ul><ul><li>Technology changes </li></ul></ul><ul><ul><li>Local factors </li></ul></ul><ul><ul><li>Business operations </li></ul></ul>
  18. 18. MANAGING RISKS <ul><li>Inform everyone in the business of the types of risks that are particularly important to their part of the operations </li></ul><ul><li>Implement measures to gather information and spot possible problems </li></ul><ul><li>Inspect facilities and equipment </li></ul><ul><li>Be active in local communities </li></ul><ul><li>Build relationships with government officials </li></ul>
  19. 19. >> C H E C K P O I N T <ul><li>What are several things businesses can do to manage risks? </li></ul>
  20. 20. RISKS IN INTERNATIONAL BUSINESS <ul><li>Strategies for reducing risk </li></ul><ul><li>International property rights </li></ul>
  21. 21. >> C H E C K P O I N T <ul><li>Why do U.S. companies have difficulty enforcing intellectual property rights in some international markets? </li></ul>

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