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M. Ehtisham Jadoon
Risk-Possibility of
loss or damage
Business Risk- Risk
of loss that is
naturally incurred by
owning or operating
a business
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.
Types of Risk
 Insurable or uninsurable
 Controllable or uncontrollable
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
Planning Risk Management
Risk Handling
 Business use these 4 methods individually or some
combination to handle risk.
 Transfer
 Accept
 Reduce
 Avoidance
Thank You!
Any Questions!

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Business risk

  • 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
  • 5.
  • 6.
  • 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
  • 9. Risk Handling  Business use these 4 methods individually or some combination to handle risk.  Transfer  Accept  Reduce  Avoidance
  • 10.