Business Risk Notes
Risk is the ______________ of an outcome
• Three types of risk for businesses:
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–
–
Economic Risks
• The risk that an ____________ will be economically __________________
• Can include:
– Changes in ________________
–
–
– Government __________________
Natural Risks
• Probability of harm to human health, property or the environment posed
by any aspect of the physical world other than _____________ activity
• Can include:
–
–
–
Human Risks
• Risks related to the actions of those __________ and ____________ the
company
• Can include:
– Employee ___________ or ____________________
–
–
–
– Computer-related crime
Impact on Profits
• Economic:
– Loss of ____________ consumers
– Product/Service popularity may end quicker than expected
– ________________ may increase and you could lose customers
– Increased _______________ could prevent certain business practices
or ________________
• Natural:
– Damage of goods/resources
– Loss of __________ = loss of ____________
• Human:
– Loss of goods/resources
–
–
– Loss of __________________
Risk Management
• The ________________, assessment, and prioritization of risks followed by
________________ and controlling the probability of ________________
events
• How Can Businesses Protect Themselves?
– Against Economic Risks:
• Conducting constant ______________ to stay ahead of the
curve
• Staying up to date with ________________
– Against Natural Risks:
• Can be more difficult that others
• Implementing __________ measures (_____________, fire
____________________)
– Against Human Risks:
• Conducting ____________________ searches on employees
• Implementing ______________ measures (___________,
__________________________)
• Providing __________________ training for employees