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FNSACC608 Handout 3.pdf - 2/28/2020 Identifying and...

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2/28/2020Identifying and Managing Business Risks | Investopedia1/13BUSINESSBUSINESS ESSENTIALSRunning a business comes with many different types of risk. Some of these potential hazardscan destroy a business while others can cause serious damage that can be costly and time-consuming to repair. Despite the risks implicit in doing business, CEOs andrisk managementofficers can anticipate and prepare for potential risks regardless of the size of the business.Identifying and Managing Business RisksByMARC DAVIS|Updated Aug 2, 2019TABLE OF CONTENTSIdentifying RisksPhysical RisksLocation RisksTechnology RisksAdvertisementEXPAND +
2/28/2020Identifying and Managing Business Risks | Investopedia2/13Identifying RisksIf and when a risk becomes a reality, a well-prepared business can minimize the impact onearnings, the lost time and productivity, and the negative impact on customers. For startupbusinesses and established organizations, the ability to identify which risks pose a threat tosuccessful operations is a key component of strategicbusiness planning. Business risks areidentified using various methods, but each identifying strategy relies on a comprehensiveanalysis of specific business activities that could present challenges to the company. Undermost business models, organizations face preventable, strategic, and external threats thatcan be managed through either acceptance, transfer, reduction, or elimination.AdvertisementAdvertisement
2/28/2020Identifying and Managing Business Risks | Investopedia3/13Important:Hiring a risk management consultant is a good investment for mostcompanies. A consultant can analyze a business and determine which risks shouldbe covered by insurance.Below are the main types of risk that firms face:AdvertisementAdvertisement
2/28/2020Identifying and Managing Business Risks | Investopedia4/13Physical RisksBuilding risksare the most common type of physical risk. Fire or explosions are the mostcommon risk to a building. To manage building risk, and the risk to employees, it isimportant that organizations do the following:Make sure all employees know the exact street address of the building to give to the 911operator in case of emergency.Make sure all employees know the location of all exits.Install fire alarms and smoke detectors.Install a sprinkler system to provide additional protection to the physical plant,equipment, documents, and, of course, personnel.

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