Risk Management (With complete solution)

Risk correct answers considered an indicator of a threat, the possibility of loss damege or any undesirable event, not the same as uncertainly Business Risks correct answers risks specific type of business or organizational structure; general greater when a business first begins operation; of great importance to entrepreneurs and business owners Natural Risks correct answers risks associated with environment, include volcanic eruptions, hurricanes earthquakes, tornados, tsunamis, fires Financial Risks correct answers risks specific to an entrepreneur's business; involve the financial state of a business Economic risks correct answers risks caused by changes in overall business conditions; result from a shift of the nations's economy Human Risks correct answers risks caused by human mistakes as well as by the unpredictability of consumers, employees and the work environment; occur in the areas of security and safety Employee Theft correct answers also referred to as internal theft; includes theft of merchandise and theft of cash Vendor Fraud correct answers the easiest way for someone to steal from your business undetected; causes loss of inventory due to falsifying records, delivering fewer items than were ordered, delivering smaller items than were specified Pure Risks correct answers occur when there is a possibility of loss, but no chance of gain Speculative Risks correct answers innate business risks; can be predicted; occur when there is a chance of either a profit or loss Controllable Risks correct answers can be prevented or reduced in frequency Uncontrollable Risks correct answers cannot be prevented or predicted; are the most devastating form of risk for most businesses Risk Management correct answers a prioritized process in which the risks with the greatest loss and the greatest