Risk Management (With correct solutions)

Name the most common type of Hazzard? correct answers Physical Hazards (fire or theft) Occupational hazards (injury or illness) Injury to third parties Damage to third parties fine due to non-compliance with statutory regulations Name different ways of managing risk? correct answers purchase Insurance Risk manager Risk management plan - formal/ proactive What are the main activities in risk management correct answers identify hazards decide on consequences and probabilites establish priorites eleminate or reduce resulting risks deal with the residual risks How do you justify risk management cost in your company? correct answers Cost of hazard (if occurs) cost of replacement cost of repair loss of good will loss of reputation production loss Name a few physical risks? correct answers fire, structrual defect, corrosion, explosion, war Name a few consequential risks correct answers Loss of profits following fire, Loss of profits following theft What is social risk? correct answers Changes in public opinion, expectations of work force, greater awareness of moral issues (e.g. enviornment) Name the type of legal liabilities? correct answers tortious liabilites, statutory liabilities, contractual liabilies How political situation could be a risk? correct answers Government intervention, sanctions, acts of foreign governments, inflationary/deflationary policies, export/import restrictions, trading alliances, changes in legislation. How financial market could be a risk? correct answers Inadequate inflation forecasts, incorrect markeing decisions, credit policies.