Risk Management

Holistic risk mapping is the outcome of risk profiling.

In a small company or sole proprietorship, the owner usually hires one experienced risk manager to perform the risk management function.

If the firm is organized as a sole proprietorship, the proprietor's personal assets are separable from those of the firm because the firm is a separate legal entity.

IT system failures and intellectual property violation risks fall under hazard risks.

Risk retention groups are similar to group self-insurance.

Risk management is a continuous process requiring constant monitoring of the program.

Like sole proprietorship, general partnership assumes unlimited liability for the firm's obligations.

Risk solutions are only as good as their underlying assumptions.

Because a sole proprietorship is a separate legal entity, investors who wish to limit possible losses connected with a particular venture may create a sole proprietorship and transfer such risks to it.

When we focus on only one risk, we work with the risk management matrix.

When a business creates a subsidiary to handle the risk exposures, the business creates a captive.

The first step in mapping risk is to identify the firm's loss exposures and estimate and forecast the frequency and severity of each potential risk.

Both loss prevention and loss reduction techniques reduce the probability of loss.

A firm's data warehousing of risk data allows decision makers to evaluate multiple dimensions of risks, but not overall risk.

Risks cannot be segregated-they interact and affect one another.

In times of high insurance prices, the likelihood of using risk transfer is greater than in times of high rates.

Risk mapping involves charting individual risk "silos" from each separate business unit.

Insurance is a common form of planned risk retention as a financing technique for individuals and most organizations.

This is a visual tool used to consider alternatives of the risk management tool set.It forms a grid of frequency and severity intersection points of each identified and measured risk.Identify the topic of discussion.

Loss reduction efforts seek to reduce the probability of a loss occurring.