Risk management
6.5a Planning a Risk Management Program
Risk management
Personnel risks include factors that affect the health, life, or earnings
6.5b The Risk Management Process
Step 1: Identify Potential Risks
Step 2: Evaluate Risks
Step 3: Select a Risk Management Method
Step 4: Implement the Risk Management Program
6.5c Risk Management Methods
Risk Avoidance
They must estimate the size of losses if anticipated problems occur.
Risk Reduction
Risk Transfer
Using the services of a transportation and storage company to transfer
How can businesses manage risks?
Risk Assumption
6.5d Diversification of Risk
Self-insurance
Portfolio risk
This inverse relationship between the two stocks, measured
Correlation
The first step of the risk management process is to:
Self-insurance is considered to be an example of risk:
Diversification is achieved by:
