Risk, Financial, Public Relations and Human Resource Management

This set of flashcards covers key concepts in risk management, financial functions, public relations, and human resource management from the lecture notes.

Risk Management

The process of identifying, assessing, and controlling threats to an organization's capital and earnings.

Identification of Risk

The process of visualizing potential future outcomes to pinpoint potential risks that may affect a business.

Preventable Risks

Risks that arise from within a business and can be controlled or avoided by altering current practices.

External Risks

Risks arising from events outside the organization, over which the business has no control.

Risk Estimation

The probability assessment of specific risks occurring and their potential impact on a business.

Risk Profile

A summary listing potential risks along with estimates of their likelihood and impact, aiding in management's decision-making.

Risk Culture

The shared values and behaviors of employees regarding risk awareness and management within an organization.

Strategic Risk

The risk of not achieving business goals due to ineffective strategies, often influenced by competition and market trends.

Compliance Risk

The potential for a business to face penalties if it fails to comply with laws and regulations.

Operational Risk

Risk resulting from failed internal processes, people, or systems, or from external events.

Financial Risk

The possibility of losing money on financial transactions or business investments.

Reputational Risk

The potential loss of revenue from a damaged reputation due to negative public perception.

Risk Management Process

A structured approach consisting of steps such as risk identification, analysis, assessment, mitigation, and monitoring.

Feasibility Study

An assessment of the practicality and potential success of a proposed project, considering factors like costs and technology.

Break-even Analysis

A financial assessment to determine the level of sales at which total revenues equal total costs.

Budgeting

The process of creating a financial plan for a business to allocate resources effectively.

Pricing Policy

Strategies used by businesses to set prices for their products based on various objectives.

Investment

The allocation of resources, usually money, in order to generate income or profit.

Insurance

A financial arrangement where an individual or business pays premiums in return for compensation in case of a covered loss.

Public Relations (PR)

The practice of managing communication between an organization and its public to maintain a positive image.

Crisis Management

The process of handling a disruptive and unexpected event that threatens the organization or its stakeholders.

Manpower Planning

The ongoing process of identifying the human resources needed, along with their skills and when they will be required.

High Employee Turnover

A situation where employees leave an organization frequently, which can negatively affect productivity and morale.

Labour Relations Act (LRA)

South African legislation that governs the relationship between employers and employees regarding rights and responsibilities.

Employment Equity Act (EEA)

A law aimed at eliminating discrimination in the workplace and promoting equal opportunity for all employees.