Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE CHAPTER 14 14-1 14-1Overview of...
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Transcript of Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE CHAPTER 14 14-1 14-1Overview of...
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
CHAPTER 14
14-114-1 Overview of Risk Management
14-214-2 Insurable Risks
14-314-3 Uninsurable Risks
Risk Management
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Overview of Risk Overview of Risk ManagementManagement
Goals Identify the types of risks facing businesses.Describe ways that businesses can deal with
risks.
14-114-1
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 14
3
Key TermsKey Terms
riskeconomic riskpersonal riskproperty risk
liability riskpure riskcontrollable riskinsurance
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 14
4
IDENTIFYING RISKSIDENTIFYING RISKS
Types of risksEconomic and non-economic risksPure and speculative risksControllable and uncontrollable risks Insurable and uninsurable risks
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 14
5
What is a risk?
Answer Risk is the possibility of incurring a
loss.
Checkpoint >>Checkpoint >>
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 14
6
DEALING WITH RISKSDEALING WITH RISKS
Avoid the riskTransfer the riskInsure the riskAssume the risk
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 14
7
Possible Ways to Deal With RiskPossible Ways to Deal With Risk
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 14
8
Identify four ways that business can deal with risks.
Answeravoiding the risk transferring the risk insuring the riskassuming the risk
Checkpoint >>Checkpoint >>
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Insurable RisksInsurable Risks
GoalsRecognize important insurance concepts.Describe several types of business insurance.
14-214-2
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 14
10
Key TermsKey Terms
insurersinsuredpolicyholderinsurance policypremiumclaim
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 14
11
PURCHASING INSURANCEPURCHASING INSURANCE
Insurance basicsInsurance companiesInsured losses
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 14
12
What information should be considered when selecting an insurance company?
Answer When selecting an insurance company, one
should collect information about the type and cost of insurance and the quality of service provided by the company if a loss occurs.
Checkpoint >>Checkpoint >>
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 14
13
BUSINESS INSURANCEBUSINESS INSURANCE
Insuring personnelHealth insuranceDisability insuranceLife insurance
Insuring propertyInsuring business operations
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 14
14
What are the three major areas that can be covered by business insurance?
Answerpersonnelpropertybusiness operations
Checkpoint >>Checkpoint >>
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Uninsurable RisksUninsurable Risks
GoalsDescribe why some business risks are
uninsurable.List the strategies a company can use to
reduce the risks of doing business internationally.
14-314-3
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 14
16
Key TermsKey Terms
property rightscounterfeiting
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 14
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IDENTIFYING RISKSIDENTIFYING RISKS
Types of uninsurable risksEconomic conditionsConsumer demandCompetitors’ actionsTechnology changesLocal factorsBusiness operations
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 14
18
MANAGING RISKSMANAGING 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 equipmentBe active in local communitiesBuild relationships with government officials
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 14
19
What are several things businesses can do to manage risks?
Answer 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.
Checkpoint >>Checkpoint >>
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 14
20
RISKS IN RISKS IN INTERNATIONAL USINESSINTERNATIONAL USINESS
Strategies for reducing riskInternational property rights
Intro to Business, 7eIntro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 14
21
Why do U.S. companies have difficulty enforcing intellectual property rights in some international markets?Answer Some countries do not enforce property
rights laws that protect intellectual property, patents, trademarks, or copyrights, especially when the products of a foreign company are involved.
Checkpoint >>Checkpoint >>