This website uses cookies to ensure you have the best experience. Learn more

Risk Management By Kellie De Forest Essay

1425 words - 6 pages

Risk ManagementByKellie DeForestIntro to BusinessMr. MandauMarch 26, 2004Research Project: #5Risk ManagementRisk management is described- as "the process of evaluating the risks faced by a firm or an individual and then minimizing the costs involved with those risks (2001)". In other words, its how a business or an individual protects himself or herself from loss or injury that could occur. There are many types of risk management as there are many types of risks.Risk avoidance is taking measure to avoid obvious risks. For instance, when a bank closes, employees lock up all currency in a secure vault to avoid losses in the instance of robbery. Unfortunately, not all risks can be prevented ...view middle of the document...

Self-insurance is only a means to cover losses, not eliminate risks.The most widely used method of dealing with risk is to transfer, or shift risks, by using an insurance company. An insurance company assumes financial responsibility for a fee or premium. They also only cover a specific risk for that premium. The contract used for this type of risk management is called an insurance policy and is generally written for one year. The agreement specifies exactly what risks are covered by the insurance company and the amount it will pay should there be a loss, it also tells the company being insured, and how much the premium will be. Many risks are insurable, such as fire damage, theft, and natural disasters, these are called insurable risks, some risks, such as lack of sales or nuclear radiation cannot be insured, therefore, these risks are called; uninsurable risks.Insurance is offered to cover almost all pure risks, but specific or modified policies can be expensive. Part of successful risk-management is ensuring that the insurance policy purchased is the proper coverage for the specific situation. Three questions can be used as guidelines in this regard.What risks must be insured against?Is the cost of insurance coverage reasonable in this situation?What other risk-management techniques can be used to reduce insurance costs (2001)?Some types of insurance are almost always purchased by a business, such as property insurance, while some are not as widely used, such as universal life insurance.A risk mentioned previously is the risk of loss due to fire. A fire insurance policy provides the protection needed against fractional or complete loss of a business's place of employment and/or the contents inside when a loss occurs due to fire or lightning. Premiums are based on the way the building is constructed, the way it is used, the contents, and if there are risk-reduction devices installed in the building (smoke detectors, extinguishers). In the actual occurrence of a fire, an insurance company would reimburse the policyholder for the actual dollar amount or the greatest amount stated in the policy, whichever is lower.Extended coverage is usually obtainable as an addition to some other insurance policy (typically fire insurance). This coverage protects against wind, hail, vandalism, explosions, civil commotion, or riots, falling aircrafts, and smoke. The premium for this type of coverage is typically quite low.Businesses protect themselves from robbery and burglary, by purchasing theft insurance. This covers any property damage sustained in the attempted break-in and compensates for any assets that have been stolen (how much a businesses theft insurance will compensate for depends on the insurance policy). Not all employees are honest and trustworthy; therefore, a business must also protect itself from any crimes an employee may commit (such as theft, forgery, or embezzlement). A fidelity bond protects a business from this type of employee. These...

Other Essays Like Risk Management By Kellie DeForest

Riskmanagement Essay

2336 words - 10 pages Zealand Standard, 1999). The reasons of using this definition are the simplicities and the coverage of the negative and positive effects on objectives. Risk management has been done for thousands of years (Bernstein, 1996). The Risk management term was first introduced in the 1950s by the insurance industry. The first text book published about risk management in 1963 titled Risk management and the Business Enterprise by Robert I. Mehr and Bob Hedges

Applying Coso Enterprise Risk Management Integrated Framework

1044 words - 5 pages Applying COSO Enterprise Risk Management Integrated Framework Today's organizations are concerned about: Risk Management, Governance, Control, Assurance and Consulting Why ERM Is Important Underlying principles: Every entity, whether for-profit or not, exists to realize value for its stakeholders. Value is created, preserved, or eroded by management decisions in all activities, from setting strategy to operating the enterprise day

Risk Management

1616 words - 7 pages PRIORITIZING RISKS BY THE RISK MANAGER AND/OR RISK MANAGEMENT TEAM. Risks related to IT systems or applications must be identified and documented based on the methodology in NIST SP 800-30, Risk Management Guide for Information Technology Systems. IT system or application weaknesses must be identified on an associated plan of action and milestones (POA&M) and tracked in accordance with HHS POA&M guidelines. Appropriate protective measures

Risk Reviewing Method

2003 words - 9 pages likelihood (i.e., the probability of risk occurrence), risk consequence (i.e., the impact and severity of risk occurrence), and thresholds to trigger management activities. Risk parameters are used to provide common and consistent criteria for comparing the various risks to be managed. Without these parameters, it would be very difficult to gauge the severity of the unwanted change caused by the risk and to prioritize the necessary actions required

Explain What Risk Manegement Means and How Risk Should Be Determined by Calculating Likelihood of Risk and Potential Impact

826 words - 4 pages the finantial industry, which may use different methods. In the first section of this essay I will seek to explain what risk management means and how risk should be determined by calculating likelihood of risk and potential impact.The second section of the essay will explain the three stages of risk management and identify three strategies for managing risk. Finally it will explain what contingency planning means and why it is important

Acces Control

2416 words - 10 pages ACTIVITIES WILL BE PERFORMED, RECORDED, AND MONITORED THROUGHOUT THE LIFECYCLE OF THE PROJECT AND PROVIDES TEMPLATES AND PRACTICES FOR RECORDING AND PRIORITIZING RISKS BY THE RISK MANAGER AND/OR RISK MANAGEMENT TEAM. Risks related to IT systems or applications must be identified and documented based on the methodology in NIST SP 800-30, Risk Management Guide for Information Technology Systems. IT system or application weaknesses must be

Access Control

2416 words - 10 pages ACTIVITIES WILL BE PERFORMED, RECORDED, AND MONITORED THROUGHOUT THE LIFECYCLE OF THE PROJECT AND PROVIDES TEMPLATES AND PRACTICES FOR RECORDING AND PRIORITIZING RISKS BY THE RISK MANAGER AND/OR RISK MANAGEMENT TEAM. Risks related to IT systems or applications must be identified and documented based on the methodology in NIST SP 800-30, Risk Management Guide for Information Technology Systems. IT system or application weaknesses must be

Risk Management

4131 words - 17 pages 1 CHAPTER 1 INTRODUCTION Risk management structure should be well thought-out, as well as a cultural fit and sustainable. (Smiechewicz, 2001) Uncertainty is not measurable. Risk is. - Frank Knight, Risk, Uncertainty and Profit (1921) 1.1 Introduction Success in business, to a certain degree, requires owners and managers to take calculated risks. The most successful business is usually managed by people who know when to push

Risk Management

526 words - 3 pages Public trust is a major concern when it comes to managing risk policies. The base of risk management is necessary for the company to grow and move into its full potential. Weak policies can lead to vulnerabilities in our infrastructure and network allowing potential threats to the integrity of the company. Credit card information, confidential information, wireless connections and other assets can all be taken without proper management. What

Risk Management Plan

1662 words - 7 pages of all major vulnerabilities and threats will be maintained by the project team and will be reported as a component of the project status reporting process for this project. All project change requests will be analyzed for their possible impact to the project risks. Management will be notified of important changes to risk status as a component to the Executive Project Status Report. (See approval on back) 2.6.1 Risk Management Plan

Issues in Risk Mgnmt

843 words - 4 pages harm or losses, while noting that risk also may provide possible opportunities (Heil, 2013). Companies sometimes can achieve considerable gains by taking risks (Heil, 2013). Companies need risk management to analyze possible risks in order to balance potential gains against potential losses and avoid expensive mistakes (Heil, 2013). Managers also should be aware of the types of risks they face (Heil, 2013). Some situations under which

Related Papers

Political Freedom Essay

964 words - 4 pages Political freedom is the absence of interference with the sovereignty of an individual by the use of coercion or aggression. Freedom is commonly known as a state of being free from government oppression. This is a definition of freedom which coincides with negative liberty and freedom can also be defined in the positive sense of the term which involves having the power and resources to fulfill one's own potential. The opposite of a free

Human Resources Essay

1964 words - 8 pages Previously we discussed PAC Resources capabilities & employee compententencies. We also identified challenges that needed to be addressed and conducted a Gap Analysis to address those issues and provided solutions. Additionally, a SWOT analysis was conducted and we provided our recommendations & justifications improvements in Employee Relations, Training & Development and Personnel Management. The purpose of today’s paper

Financial Risk Management 2 Essay

561 words - 3 pages Financial risk management From Wikipedia, the free encyclopedia Financial risk management is the practice of creating economic value in a firm by using financial instruments to manage exposure to risk, particularly credit risk and market risk. Other types include Foreign exchange, Shape, Volatility, Sector, Liquidity, Inflation risks, etc. Similar to general risk management, financial risk management requires identifying its sources, measuring

Enterprise Risk Management In The 21st Century

630 words - 3 pages Today at the starting days of the 21st century, technology we are now living in the 21st and it brings with it enterprises with innovative, complicated technologies and everyone in an entity has some responsibility for enterprise risk management. The underlying premise of and Enterprise Risk Management (ERM) is that every entity exists to provide value for its stakeholders. Value is maximized when management sets strategy and objectives to