Marketing - Chapter 34 - Risk Management
Terms in this set (21)
A type of bond that protects a business
from employee dishonesty.
When it is impossible to prevent or
transfer risks, businesses must assume
responsibility for them. This is called ___.
A type of insurance paid by employers to
cover employees who suffer job-related
injuries and illness and to protect
employers from being sued by an
employee who is injured on the job.
A common way to transfer risk is through ___.
The stealing of merchandise from a
These kinds of risk occur from changes in
overall business conditions.
These insure against losses that might
occur when work or a contract is not
finished on time or as agreed.
Product is another type of economic risk for businesses that depends on fashion or the latest trends to market
goods and services.
Optional coverage on a basic insurance
The potential for financial gain, loss, or failure.
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.
A risk that results from changes in overall business conditions. Examples include: Competition, inflation, falling stock prices, government regulation
A risk that is caused by natural occurrences, such as floods, fires, and earthquakes.
Risk caused by employee dishonesty, errors, mistakes, and omissions, as well as the unpredictability of customers or the workplace.
Methods of handling risk
Risk Prevention and control, risk transfer, risk retention, risk avoidance
a risk management and control strategy that involves the contractual shifting of a pure risk from one party to another. Examples include: property insurance, warranties, ownership
the elimination of hazards, activities, and exposures that can negatively affect an organization's assets.
A method of self-insurance whereby the organization retains a reserve fund for the purpose of offsetting unexpected financial claims.
A contract between a business and an insurance company to cover a specific business risk.
Also called a surety bond, a bond that provides financial protection for losses that might occur when a construction project is not finished due to a contractor's impaired financial condition.
A life insurance policy is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured's death.
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