Itb Chap 14
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Transcript of Itb Chap 14
Introduction to Business© Thomson South-Western
ChapterChapterChapterChapter
Risk Management
14-114-1 Overview of Risk Management
14-214-2 Insurable Risks
14-314-3 Uninsurable Risks
1414
Chapter 14
Slide 2Introduction to Business
© Thomson South-Western
LESSON 14-1
Overview of Risk Management
Goals Identify the types of risks facing
businesses. Describe ways that businesses can
deal with risks.
Chapter 14
Slide 3Introduction to Business
© Thomson South-Western
Key Terms
risk economic risk personal risk property risk
liability risk pure risk controllable risk insurance
Chapter 14
Slide 4Introduction to Business
© Thomson South-Western
IDENTIFYING RISKS
Types of risks Economic and non-economic risks Pure and speculative risks Controllable and uncontrollable risks Insurable and uninsurable risks
Chapter 14
Slide 5Introduction to Business
© Thomson South-Western
>> C H E C K P O I N T
What is a risk?
Chapter 14
Slide 6Introduction to Business
© Thomson South-Western
DEALING WITH RISKS
Avoid the risk Transfer the risk Insure the risk Assume the risk
Chapter 14
Slide 7Introduction to Business
© Thomson South-Western
POSSIBLE WAYS TO DEAL WITH RISK
Method Activity
Avoid Choose not to complete the risky activity
Transfer Find another business to complete the activity
Insure Purchase insurance to pay for any losses
Assume Complete the activity with full responsibility
Chapter 14
Slide 8Introduction to Business
© Thomson South-Western
>> C H E C K P O I N T
Identify four ways that business can deal with risks.
Chapter 14
Slide 9Introduction to Business
© Thomson South-Western
LESSON 14-2
Insurable Risks
Goals Recognize important insurance
concepts. Describe several types of business
insurance.
Chapter 14
Slide 10Introduction to Business
© Thomson South-Western
Key Terms
insurers insured policyholder insurance policy premium claim
Chapter 14
Slide 11Introduction to Business
© Thomson South-Western
PURCHASING INSURANCE
Insurance basics Insurance companies Insured losses
Chapter 14
Slide 12Introduction to Business
© Thomson South-Western
>> C H E C K P O I N T
What information should be considered when selecting an insurance company?
Chapter 14
Slide 13Introduction to Business
© Thomson South-Western
BUSINESS INSURANCE
Insuring personnel Health insurance
Disability insurance
Life insurance
Insuring property
Insuring business operations
Chapter 14
Slide 14Introduction to Business
© Thomson South-Western
>> C H E C K P O I N T
What are the three major areas that can be covered by business insurance?
Chapter 14
Slide 15Introduction to Business
© Thomson South-Western
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.
Chapter 14
Slide 16Introduction to Business
© Thomson South-Western
Key Terms
property rights counterfeiting
Chapter 14
Slide 17Introduction to Business
© Thomson South-Western
IDENTIFYING RISKS
Types of uninsurable risks Economic conditions Consumer demand Competitors’ actions Technology changes Local factors Business operations
Chapter 14
Slide 18Introduction to Business
© Thomson South-Western
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
Chapter 14
Slide 19Introduction to Business
© Thomson South-Western
>> C H E C K P O I N T
What are several things businesses can do to manage risks?
Chapter 14
Slide 20Introduction to Business
© Thomson South-Western
RISKS IN INTERNATIONAL BUSINESS Strategies for reducing risk International property rights
Chapter 14
Slide 21Introduction to Business
© Thomson South-Western
>> 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?