Risk Management Lecture Notes

These flashcards cover key concepts and terminology related to risk management as discussed in the lecture.

Risk Management Model Steps

The process of identifying, assessing, controlling, implementing, and monitoring risks.

Hazard

Anything that could go wrong, such as fire, theft, or cyberattack.

Assess & prioritize risks

Rate the likelihood and impact of identified risks.

Control measures

Strategies to manage risks such as avoiding, reducing, transferring, or accepting them.

Enterprise Risk Management (ERM)

A strategic approach to managing risks across the entire organization.

Goal in ERM

A specific aim the company seeks to achieve, e.g., expanding internationally.

Risk Treatment

The process of avoiding, transferring, or reducing risks.

Risk Creates Value

Smart risk-taking can lead to organizational growth and benefits.

Risk Mapping & Profiling

Tools used to visualize risks in terms of probability and severity.

Cost of Risk

Components including direct costs like repairs, indirect costs such as lost business, and insurance premiums.

Risk Control Theories

Strategies including prevention, reduction, enablement, and enhancement of risks.

Emergency Response

Immediate actions taken during an emergency, such as evacuation.

Business Continuity

Plans to keep the business operational after a disaster.

Risk Retention

Choosing to self-insure or pay for losses as they occur.

Legal Components in Risk Management

Compliance with laws such as OSHA and environmental regulations.

Recommended Insurance for Young Adults

Includes auto insurance, health insurance, and optional life and disability insurance.