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what is a risk management
Risk management is the process of identifying , evaluating , and responding to the possibilty of harmful events.
Risk management approches?
- 1. Risk avoidence
- 2. Risk reduction
- 3. Risk Shifting
- 4. Risk acceptance
1. Risk Avoidence?
Some risks are so serious that they should be avoided alltogetter.
2. Risk Reduction?
Some risks can be reduced to an acceptable level through precautions.
3. Risk Shifting?
Exceptionally important strategies:
Some risks maybe shifted to another party.
- 1. Insurance
- 2. Exclusion clauses.
4. Risk acceptances?
Sometimes appropriate to accept a risk.
Insuranc is a contract in which one party agrees, in exchange for a price, to pay certain amount of money if another party suffers a loss.
it provides a benfit if the purchase is held liable for doing something wrong.
it provides a benfit if the purchaser's property is damaged, lost, or destroyed.
Exclusion and limit clauses?
- 1. exclude all risk of liabilties.