Business RiskMarketing Co-op

Communication What is communication? Types of communication

Online Telephone Nonverbal

Previously

Identify the 3 types of business risk

Explain how risk affects business decisions

Identify ways that businesses can protect themselves from risk

SWBAT

Risk if the uncertainty of an outcome

Three types of risk for businesses: Economic Natural Human

Business Risk

The risk that an endeavor will be economically unsustainable

Can include: Changes in demographics Business cycle Competition Government regulations

Economic Risks

Probability of harm to human health, property or the environment posed by any aspect of the physical world other than human activity

Can include: Perishability Weather Fires

Natural Risks

Risks related to the actions of those inside and outside the company

Can include: Employee theft or incompetence Accidents Shoplifting Fraud Computer-related crime

Human Risks

Economic: Loss of potential consumers Product/Service popularity may end quicker than expected Competition may increase and you could lose customers Increased regulations could prevent certain business practices or production

Natural: Loss of goods = loss of profits Damage of goods/resources

Human: Loss of goods/resources Injuries Lawsuits Loss of information

Impact on Profits

Risk Management The identification, assessment, and

prioritization of risks followed by minimizing and controlling the probability of unfortunate events

How Can Businesses Protect Themselves?

Against Economic Risks: Conducting constant research to stay ahead of the

curve Staying up to date with regulations

Against Natural Risks: Can be more difficult that others Implementing safety measures (sprinklers, fire

extinguishers)

Against Human Risks: Conducting background searches on employees Implementing security measures (cameras,

internet security) Providing safety training for employees

How Can Businesses Protect Themselves?

What are the types of business risks? What are examples of each? How can companies prevent each type of

risk?

Review

Find a company that has had to deal with at least of the types of risk we talked about today

On a PowerPoint, give the following information:

Business Risk Assignment

•What is the company? (Name, What do they do)•What happened to them? (Disaster, Fraud, etc.)•What was the result? (loss of money, etc.)•How did they handle the situation?•Do you think they did the right thing?•How would you have done it differently?