Lesson Plan
Course Title – Marketing Dynamics Unit 1, Lesson 4
Session Title – Risk Management
Performance Objective:
After completing this lesson, students will be able to categorize types of business risk,
interpret how various types of risk impact business activities, and evaluate security
precautions and demonstrate knowledge of safety precautions and skills related to
health and safety in the work place.
Approximate Time:
When taught as written, this lesson should take two to three days to complete.
Specific Objectives:
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


Students will be able to categorize types of business risk.
Students will be able to interpret how various types of risk impact business
activities
Students will be able to evaluate security precautions.
Students will be able to demonstrate knowledge of safety precautions and skills
related to health and safety in the work place.
Terms:






Risk
Risk Management
Business Risks
Economic Risks
Natural Risks
Human Risks
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Preparation
TEKS Correlations:
This lesson, as published, correlates to the following TEKS. Any changes/alterations to
the activities may result in the elimination of any or all of the TEKS listed.
130.347 (c)(5)(F)
…conduct a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis for
use in the marketing planning process; …
130.347 (c)(27)(A)
…categorize business risks …
130.347 (c)(27)(B)
…interpret how various types of risks impact business activities…
Interdisciplinary Correlations:
English:
110.31 (b)(21)(B)
… organize information gathered from multiple sources to create a variety of graphics
and forms (e.g., notes, learning logs)…
110.31 (b)(22)(B)
…evaluate the relevance of information to the topic and determine the reliability, validity,
and accuracy of sources (including Internet sources) by examining their authority and
objectivity…
110.31 (b)(23)(C)
… use graphics and illustrations to help explain concepts where appropriate…
110.31 (b)(23)(D)
… use a variety of evaluative tools (e.g., self-made rubrics, peer reviews, teacher and
expert evaluations) to examine the quality of the research…
Occupational Correlation (O*Net - http://www.onetonline.org/)
Risk Management Specialists 13-2099.02 Similar Job Titles: Risk Management Director, Chief Risk Officer, Risk Manager, Credit
Risk Management Director
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Tasks:
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Document and ensure communication of key risks.

Maintain input or data quality of risk management systems.

Recommend ways to control or reduce risk.

Identify key risks and mitigating factors of potential investments, such as asset
types and values, legal and ownership structures, professional reputations,
customer bases, or industry segments.

Devise systems and processes to monitor validity of risk modeling outputs.

Gather risk-related data from internal or external resources.

Identify and analyze areas of potential risk to the assets, earning capacity, or
success of organizations.

Develop or implement risk-assessment models or methodologies.
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Produce reports or presentations that outline findings, explain risk positions, or
recommend changes.

Plan and contribute to development of risk management systems.
Soft Skills:
Active Listening, Reading Comprehension, Critical Thinking, Speaking, Coordinating,
Active Learning.
Teacher Preparation:
Teacher will review the terms in the outline, digital presentation slides and handouts to
become familiar with lesson.
Teacher should locate and evaluate various resources and websites before the lesson.
Teacher will have assignments and website information ready to distribute to students.
References:
Marketing Essentials, Schneider Farese, Kimbrell, Woloszyk, Glencoe McGraw-Hill
Instructional Aids:
1. Display for digital presentation, websites for assignments and class discussion
2. Marketing Essentials, Schneider Farese, Kimbrell, Woloszyk, Glencoe McGrawHill
3. FEMA website http://www.ready.gov/natural-disasters
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Materials Needed:
1. Printer paper
2. Assignments and website information ready to distribute to students.
(SWOT Analysis) Direction Sheet
2. Poster board
3. Internet for students to research types of businesses.
Equipment Needed:
1. Computer with digital presentation and Internet access
2. Projector to show Internet sites
3. Computers for students to conduct research
Learner Preparation:
Business owners must understand the risks that are associated with their business. If
they are not prepared for risks, they are in serious jeopardy of losing their business if
something happens such as a natural disaster or employee theft. There are steps that
can be taken to minimize the risk but first business owners must understand where they
are at risk in order to work to minimize it.
Ask students how much money they think natural disasters such as Hurricane Katrina
cost businesses in Louisiana, and the Gulf coast? Or tornados in Texas?
Introduction
Introduction (LSI Quadrant I):
SHOW: Show students the FEMA website which lists type of natural disasters.
http://www.ready.gov/natural-disasters .
ASK: Ask students if they realize that businesses, both large and small, need to have
disaster preparedness plan in place?
SAY: Explain that all businesses are vulnerable to some level of risk.
ASK: Ask students if they can name some of the risks that businesses are susceptible
to.
SAY: Explain that risk comes not only from natural disasters but risk can come from
internal sources also.
ASK: Ask students how much they employee theft affects businesses.
SAY: Explain that business owners need to be aware of risk that can come from all
sources, natural disasters, employee theft, defective products, and even lawsuits.
ASK: Ask students if they can name any other sources of risk.
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SAY: Explain that the economy can also cause risk for business owners. During the
recession a record number of businesses failed because consumers quit spending
money. Some risks can be mitigated while others cannot.
Outline
Outline (LSI Quadrant II):
Instructors can use the digital presentation, slides, handouts, and note pages in
conjunction with the following outline.
MI
I.
Outline
Risk is the possibility of financial loss.
Notes to Instructor
Use digital
presentation and
current events as aid.
A businesses goal is
to be profitable but
that may be difficult.
Businesses may not
make as much
money as they
expected or there
may be an
unexpected financial
loss. This is the risk
that business people
take when they open
their businesses.
II. Risk Management is the systematic
process of managing an organization’s risk
exposure to achieve objectives in a manner
consistent with public interest, human
safety, environmental factors, and the law.
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Use digital
presentation as aid.
Businesses cannot
eliminate risks
altogether, however
they can reduce risk
and manage it by
using the latest and
best marketing
information, making
wise choices and
analyzing
opportunities.
III. Business Risks are the possibility of
business loss or failure. There are three
types of business risks
A. Economic
B. Natural
C. Human
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Use digital
presentation as an
aid.
Business risks can
be categorized into
three different
categories.
Economic, natural,
and human. It is
important for
business people to
understand what
these risks are so
they can put plans in
place to minimize
these risks. Knowing
what your greatest
strengths and
weaknesses will
enable the business
to have a greater
chance of success.
IV. Economic Risks occur from changes in the
overall business conditions. These risks
include the following.
A. Type or amount of competition
1. Businesses must keep up
with the products that their
competitors are offering.
2. Foreign competitors might be
able to offer product at lower
price.
B.
Changing customer lifestyle
1. Single parent households
2. Dual-income households
3. Aging populations
4. Postponing marriage
C.
Product obsolescence
1. Fashion trends
2. Technology
3. Fads
D. Government regulation
1. New laws or regulations
passed
2. Recalls
E. Inflation
F. Deflation
Use digital
presentation as aid.
Economic risk
encompasses many
aspects of business
that business owners
have no control over.
Competition can
come from new
companies or
existing companies
who modify their
product or drop
prices to be more
competitive. Risk can
also come from the
population aging or
changing lifestyles
like delaying
marriage until they
are older or the rise
of single parent
families. Fashion
trends and fads can
also be risky. It is
important to
understand the
market and not over
purchase on products
and be left with
unwanted inventory.
Government
regulation can have a
big impact on the
economic well being
of a business. If the
government passes
new legislation that
requires higher taxes
or more regulation, it
will have an
economic impact on
the business.
Inflation and deflation
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also have a dramatic
effect on business.
The cost of goods
and services goes up
with inflation and
goods are not worth
the same value in
deflationary times.
V. Natural Risks are risk that are caused by
natural disasters such as floods, tornadoes,
hurricanes, fires, lightning, droughts,
earthquakes, and unexpected changes in
normal weather patterns
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Use digital
presentation as an
aid.
Insurance can help
with some natural
risks, but not all.
Some businesses
depend upon
predictable weather.
Ski resorts depend
upon snow during the
winter months. If
there is an unusually
warm winter without
snow, people will not
go skiing and the
resorts will lose
money. The same is
true for beach resorts
that depend on warm
sunny weather to
draw tourists. Other
types of natural
disasters can wreak
havoc on a business
but most can be
insured, which we will
discuss later.
VI. Human risks are caused by human
mistakes and by the unpredictability of
customers, employees, and the work
environment.
A. Theft
B. Nonpayment of accounts
C. Bad checks
D. Employee negligence
E. Employee incompetence
F. Employees abuse discounts
VII. SWOT Analysis
A. Strengths – What do you do well?
What advantages do you have over
your competitors?
B. Weaknesses – What are your
weaknesses? Lack of resources?
Inexperience? Etc…
C. Opportunities – These are external
to your business. What opportunities
exist in your market, or in the
environment, from which you hope
to benefit?
D. Threats – These are beyond your
control. Government changes,
economic downturns, bad publicity,
etc…
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.,
Use digital
presentation as aid.
There are lots of
ways that people can
be a risk to business,
both as consumers
and employees.
Customers may
shoplift or not pay
their bills. They can
also write bad checks
that cannot be
collected. Employees
can be risky if they
are not careful about
their job and so
something to damage
the products.
Employee theft is
also risk that
business owners
must take.
Use digital
presentation as an
aid.
Businesses can use
a SWOT analysis to
determine where
their weaknesses lie
and how they can
capitalize on their
strengths. In order to
conduct the analysis,
companies have to
look at their
competitors, the
economy, internal
threats, and
government
regulations to see
what they need to be
wary of in the future.
Strengths and
weaknesses are
within your
organization.
Opportunities and
threats are external
to your organization.
Verbal
Lingui
stic
Logical
Visu
Mathemat al
ical
Spat
ial
Music
al
Rhyth
mic
Bodily
IntraKinesth perso
etic
nal
Interperso
nal
Natura Existenti
list
alist
Application
Guided Practice (LSI Quadrant III):
Ask students to choose a company in which they are interested. Have them brainstorm
the risks that company faces from their competitors? From the economy? From the
government? Write the answers on the board as the students brainstorm.
Independent Practice (LSI Quadrant III):
SWOT (Strengths, Weaknesses, Opportunity, Threats) Analysis
(Team project: two students per team)
1.
2.
Each team will use poster board dividing into four sections. The sections will be
labeled as follows:
a. Strengths
b. Weaknesses
c. Opportunities
d. Threats
Students will choose their favorite sports team. It could be a team at their high
school or a professional team. They will identify each of the SWOT elements for
their team.
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3.
Each group will present their SWOT analysis to the class.
This project will be evaluated using the assigned rubric.
Summary
Review (LSI Quadrants I and IV):
Question: What are the different types of risks associated with businesses?
Question: Why do businesses have to be proactive in their approach to risk?
Question: What are some risks that the government causes for businesses?
Question: What are some disadvantages of a sole proprietorship?
Question: What is a SWOT analysis?
Question: What type of business would benefit most from conducting a SWOT
analysis?
Question: Why would it be wise for some high risk businesses to incorporate?
Question: How might employees be a threat to businesses?
Question: Why is it important to know what your competitors are up to?
Question: How can customers be a risk to business?
Question: What is the role of the business owner in regard to risk?
Evaluation
Informal Assessment (LSI Quadrant III):
Instructor should observe the work ethic of individuals involved in class discussions and
the Independent Practice activity.
Formal Assessment (LSI Quadrant III, IV):
Students will be evaluated on their “SWOT Analysis” by using the assigned rubric.
Extension
Extension/Enrichment (LSI Quadrant IV):
Risk Analysis
Student Directions: Choose a business that you can research on the Internet. You will
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research the company to complete a SWOT analysis. From the SWOT analysis you will
write a paper detailing each of the SWOT elements and what the company should do to
take advantage of their opportunities and lessen their threats. The SWOT analysis must
include information on competitors, governmental threats, economic threats, and human
threats.
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Marketing Dynamics
Unit 1, Lesson 4 Student Directions
Independent Practice (LSI Quadrant III):
SWOT (Strengths, Weaknesses, Opportunity, Threats) Analysis Project
(Team Project: two students per team)
1.
2.
3.
Each team will use poster board dividing into four sections. The sections will be
labeled as follows:
a.
Strengths
b.
Weaknesses
c.
Opportunities
d.
Threats
Students will choose their favorite sports team. It could be a team at your high
school or a professional team. You will identify each of the SWOT elements for
your team.
Each group will present their SWOT analysis the class.
This project will be evaluated using the assigned rubric.
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Independent Practice (LSI Quadrant III):
SWOT Analysis Project
Rubric
20
15
CATEGORY
10
5
Presentation
Well-rehearsed with
smooth delivery that
holds audience
attention.
Rehearsed with fairly
smooth delivery that
holds audience
attention most of the
time.
Delivery not smooth, Delivery not smooth
but able to maintain and audience
interest of the
attention often lost.
audience most of the
time.
Attractiveness
Makes excellent use
of font, color,
graphics, effects,
etc., to enhance the
presentation.
Makes good use of
font, color, graphics,
effects, etc. to
enhance the
presentation.
Makes use of font,
color, graphics,
effects, etc., but
occasionally these
distract from the
presentation
content.
Use of font, color,
graphics, effects,
etc., but these often
distract from the
presentation content.
Content
Covers topic indepth with details
and examples.
Subject knowledge
is excellent.
Includes essential
knowledge about the
topic. Subject
knowledge appears
to be good.
Includes essential
information about
the topic but there
are one to two
factual errors.
Content is minimal
OR there are several
factual errors.
Organization
Content is well
organized using
headings or bulleted
lists to group related
material.
Uses headings or
bulleted lists but the
overall organization
of topics appears
flawed.
Content is logically
organized for the
most part.
There was no clear
or logical
organizational
structure; just lots of
facts.
Originality
Product shows a
large amount of
original thought.
Ideas are creative
and inventive.
Product shows some
original thought.
Work shows new
ideas and insights.
Uses other people's
ideas (giving them
credit), but there is
little evidence of
original thinking.
Uses other people's
ideas, but does not
give them credit.
Total Points Earned _______
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