Risk Management:
- identification,
- evaluation and
- prioritization of Risks
Risk Treatment
- avoidance
- reduction (optmizie, mitigate)
- sharing (outsource or insure)
- retention (accept and budget)
Businesses
Nature of Business
- business = produces goods/services
- mainly for others
- takes inputs and creates outputs
- factors of productions
- labour
- land
- capital
- entrepeneurship
- knowledge/technology
- Main functions of businesses
- finance and accounting
- marketing
- procurement
- management / HR
- operations management
- stakeholder management
Characteristics of Successful Businesses
Link to original
- market orientation
- Liquidity and sufficient financial resources
- cost and risk awareness
- Profitability
- qualified personnel
- social responsibility - stakeholder management
- sustainability - sustainable development
Risk Awareness
Potential loss and threat, but also potential gain and chance
Sources of Risk
- uncertainty in professional life
- uncertainty in private life
- threats from failure
- legal liabilities, credit risk, accidents
- natural causes and disasters
- events of uncertain or unpredictable root-causes
- deliberate attacks by competitors
- et cetera