Professional Documents
Culture Documents
1-1
Primitive Human’s Responses to Risk
1-2
Primitive Responses to Risk
• Creation of tools
1-3
Evolution of Business Risks
1-4
Evolution of Business Risks
• Money
• Legal System
1-5
Invention of Money
1-6
Money - Credit
1-7
The Legal System
1-8
OTHER COMMERCIAL INNOVATIONS
3000 BC
1-9
1800 BC - CODE OF HAMMURABI
1-10
Loan Forgiveness Provisions
1-11
900 BC: General Average
1-12
GROWTH OF BUSINESS RISKS
1-13
GROWTH OF BUSINESS RISKS
1-14
RISKS OF THE MODERN BUSINESS
ENVIRONMENT
1-15
MODERN BUSINESS RISKS
• computer fraud
1-16
Nuclear Hazards
1-17
Terrorism
Bombing
1-18
Perils of Nature
1-19
Increasing Dollar Amount of Loss
1-20
Increasing Dollar Amount of Loss
1-21
The Concept of Risk
1-22
Common Elements in Definitions of Risk
1-23
The Text’s Definition of Risk
1-24
Uncertainty and its Relationship to Risk
1-25
The Degree of Risk
1-26
Risk Distinguished From Peril and Hazard
1-27
Classifications of Hazards
Physical
Moral
Morale
1-28
Classifications of Risk
1-29
Static and Dynamic Risks
1-32
Classifications of Pure Risk
1. Personal risks
2. Property risks
3. Liability risks
1-33
The Burden of Risk
1-34
Methods of Dealing With Risk
1. Avoidance
2. Reduction
3. Retention
4. Transfer
5. Sharing
1-35
BUSINESS RISK MANAGEMENT
1-36
Diversification as a Solution for Pure Risks
1-37
Diversification and Pure Risk
1-38
Diversification and Pure Risk
1-39
Diversificaiton and Pure Risk
1-40
Diversification and Pure Risk
1-42
Diversification and Pure Risk
• Suppliers
• Customers
• Employees
1-43
Diversification and Pure Risk
1-44