This document discusses risk and risk management for businesses. It defines business risk as the risk of loss naturally incurred by owning or operating a business. It states that the goal of risk management is to systematically manage risk to achieve business objectives, and that while risk cannot be eliminated, it can be reduced and managed. The document outlines different types of risk businesses may face, such as insurable or uninsurable, controllable or uncontrollable, pure risk, economic risk, human risk, natural risk, and speculative risk. It also discusses four common methods for handling risk: transfer, accept, reduce, and avoidance.

1. M. Ehtisham Jadoon

2. Risk-Possibility of
loss or damage
Business Risk- Risk
of loss that is
naturally incurred by
owning or operating
a business

3. Risk management
 The systematic process of managing risk to achieve
your business objectives.
 Risk cannot be totally eliminated, but it can be
reduced and managed.

4. Types of Risk
 Insurable or uninsurable
 Controllable or uncontrollable

7. Other Types of Risk
 Pure risk
Threat of loss with no opportunity of gain
 Economic - Occurs when there is chance of financial loss or
change in business conditions
 Human - Risk of harm caused b human mistakes and thefts
 Natural - Possibility of catastrophe or environmental change
 Speculative risk
 Risking loss to make a profit.
 Possibility of seeing a loss, no change, or actually making
profit
 Examples include
 buying new machinery
 constructing new buildings

8. Planning Risk Management

9. Risk Handling
 Business use these 4 methods individually or some
combination to handle risk.
 Transfer
 Accept
 Reduce
 Avoidance

11. Thank You!
Any Questions!