1. Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE CHAPTER 14 14-1 14-1Overview of Risk Management 14-2 14-2Insurable Risks 14-3 14-3Uninsurable Risks Risk Management

2. Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Overview of Risk Management Goals Identify the types of risks facing businesses. Describe ways that businesses can deal with risks. 14-1

3. Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 14 3 IDENTIFYING RISKS Types of risks Economic and non-economic risks Pure and speculative risks Controllable and uncontrollable risks Insurable and uninsurable risks

4. Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 14 4 DEALING WITH RISKS Avoid the risk Transfer the risk Insure the risk Assume the risk

5. Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 14 5 Possible Ways to Deal With Risk

6. Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 14 6

7. Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Insurable Risks Goals Recognize important insurance concepts. Describe several types of business insurance. 14-2

8. Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 14 8 PURCHASING INSURANCE Insurance basics Insurance companies Insured losses

9. Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 14 9 BUSINESS INSURANCE Insuring personnel Health insurance Disability insurance Life insurance Insuring property Insuring business operations

10. Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 14 10

11. Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Uninsurable Risks Goals Describe why some business risks are uninsurable. List the strategies a company can use to reduce the risks of doing business internationally. 14-3

12. Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 14 12 IDENTIFYING RISKS Types of uninsurable risks Economic conditions Consumer demand Competitors’ actions Technology changes Local factors Business operations

13. Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 14 13 MANAGING RISKS Inform everyone in the business of the types of risks that are particularly important to their part of the operations Implement measures to gather information and spot possible problems Inspect facilities and equipment Be active in local communities Build relationships with government officials

14. Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 14 14 RISKS IN INTERNATIONAL USINESS Strategies for reducing risk International property rights

15. Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 14 15