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WorksheetsRisk Management
Total questions: 16
Worksheet time: 15mins
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
Risks that result from changes in overall
business conditions.
(a)
Give 8 Example of Economic Risks
More businesses that would
compete with your business open in the area.
Changing consumer lifestyles
Competition
The lifestyle
of the consumers in your area changes due to
new industry opening or closing, new
businesses, etc
Changing consumer lifestyles
Population changes
Potential customers
Limited usefulness of products
Population changes
Give 2 under Population Changes
Just as with inflation the
availability of cash affect customer
purchases.
the availability of cash to
customers will reflect in the buying patterns.
moving out due to economic downfall
or moving in due to new economic opportunities
