Business Risk
- Created by: Jess
- Created on: 01-12-12 17:22
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- Business Risk
- What is a risk?
- The possibility of incurring losses or the possibility of incurring gains
- A circumstance or an outcome that may have an impact of a business
- Types
- Quantifiable Risk
- The outcome can be measured.
- e.g. the loss of sales, loss of profits
- Unquantifiable Risk
- Something unexpected occurs
- e.g. the possible impact of the image of a business if the product is unsuccessful.
- Quantifiable Risk
- Risk Management
- The plans that a firm puts in place to manage risk
- The aim being to control & minimise threats to profits, production, personnel, reputation etc
- The process
- Identify potential threats and likelihood of this occurence
- Take appropriate action to prevent or address most likely threats
- Review existing operations
- Draw up contingency plans
- Examples of ways to reduce & control risk
- Regular fire checks
- Using different currencies
- Having two suppliers
- Stockpile raw materials
- use external bodies
- What is a risk?
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