Risk Management

The possibility of a financial loss.

(a)  

The process of managing a business’s

exposure to risk in order

(a)  

The possibility of business failure or loss.

(a)  

Give 3 parts of Business Risks Terms

• Risk

• Speculative Risk

• Business Risk

• Risk Management

They have 2 Types of Risk

• Speculative Risk

• Economic Risk

• Natural Risk

• Pure Risk

Risking loss to make a profit.

• Speculative Risk

• Pure Risk

Possibility of seeing a loss, no change, or

actually making profit

• Speculative Risks

• Pure Risks

Examples of Speculative Risk.

• Buying New Machinery

• Constructing New Buildings

• Competition

• Changing Consumer Lifestyles

The possibility of loss to a business without any

possibility of gain

(a)  

Give 3 under in Pure Risks

• Economic Risks

• Natural Risks

• Human Risks

• Business Risks