The document discusses risk management for businesses. It covers identifying different types of risks businesses face, ways to deal with risks including avoiding, transferring, insuring or assuming risks. It also discusses insurable risks and types of business insurance. Finally, it discusses uninsurable risks and strategies for managing risks, both domestic and international.

1. Risk Management 14-1 Overview of Risk Management 14-2 Insurable Risks 14-3 Uninsurable Risks 14

2. LESSON 14-1 Overview of Risk Management Goals Identify the types of risks facing businesses. Describe ways that businesses can deal with risks.

3. Key Terms risk economic risk personal risk property risk liability risk pure risk controllable risk insurance

4. IDENTIFYING RISKS Types of risks Economic and non-economic risks Pure and speculative risks Controllable and uncontrollable risks Insurable and uninsurable risks

5. >> C H E C K P O I N T What is a risk?

6. DEALING WITH RISKS Avoid the risk Transfer the risk Insure the risk Assume the risk

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. >> C H E C K P O I N T Identify four ways that business can deal with risks.

9. LESSON 14-2 Insurable Risks Goals Recognize important insurance concepts. Describe several types of business insurance.

10. Key Terms insurers insured policyholder insurance policy premium claim

11. PURCHASING INSURANCE Insurance basics Insurance companies Insured losses

12. >> C H E C K P O I N T What information should be considered when selecting an insurance company?

13. BUSINESS INSURANCE Insuring personnel Health insurance Disability insurance Life insurance Insuring property Insuring business operations

14. >> C H E C K P O I N T What are the three major areas that can be covered by business insurance?

15. LESSON 14-3 Uninsurable Risks Goals Describe why some business risks are uninsurable. List the strategies a company can use to reduce the risks of doing business internationally.

16. Key Terms property rights counterfeiting

17. IDENTIFYING RISKS Types of uninsurable risks Economic conditions Consumer demand Competitors’ actions Technology changes Local factors Business operations

18. MANAGING RISKS Inform everyone in the business of the types of risks that are particularly important to their part of the operations Implement measures to gather information and spot possible problems Inspect facilities and equipment Be active in local communities Build relationships with government officials

19. >> C H E C K P O I N T What are several things businesses can do to manage risks?

20. RISKS IN INTERNATIONAL BUSINESS Strategies for reducing risk International property rights

21. >> C H E C K P O I N T Why do U.S. companies have difficulty enforcing intellectual property rights in some international markets?