Business - Risk Management (Solved!)

business risk correct answers the possibility of financial loss. Situations that can lead to financial gain, loss or failure. risk management correct answers the systematic process of managing an organization's risks to achieve objectives in a manner consistent with public interest, human safety, environmental needs, and the law. economic risks correct answers risks that result from changes in overall business conditions. natural risks correct answers Risks caused by natural causes, such as floods, tornadoes, hurricanes, fires, etc. human risk correct answers risks caused by human mistakes or dishonesty, or other risks that can be controlled by humans. insurance policy correct answers a contract between a business and and insurance company to cover a specific business risk. extended coverage correct answers an endorsement tha provides protection against types of loss that may not be covered under a basic property insurance policy. fidelity bonds correct answers a type of insurance that protects a business from employee dishonesty. performance bonds correct answers also called surety bonds, provide financial protection for losses that might occur when a construction project is not finished on time or as agreed due to the contractor's impaired financial condition. risk control correct answers minimizing potential losses by preventing, avoiding, or reducing risk risk transfer correct answers buying insurance to shift the risk of financial loss to an insurance company risk avoidance correct answers lowers the chance for loss by not doing the activity that could result in the loss risk retention correct answers business assumes the cost of uninsurable risks fraud correct answers Writing a check knowing there is not enough money to cover the amount; or passing a stolen check embezzlement correct answers employee theft obsolescence correct answers When something goes out of style; is no longer popular