It is important to examine some techniques for how to properly deal with risk.
There are two parts to this assignment that you will need to complete.
Based on your reading, research, and lecture notes develop a 6 to 10 slide PowerPoint presentation explaining the four major methods for handling risk in your business. The PowerPoint should include a combination of graphics, tables, and charts. The use of bullets in the slides should be limited
•Intro – 1 to 2 slides – The Intro should cover the following: Explain a time that your place of employment (or a business you are familiar with) used each method. Was it successful? Why or why not
•4 methods – 4 to 6 slides
Conclusion – 1 to 2 slides
Also, prepare a 1 -2 page Word document that expands on the methods success or failure and any other talking points. In a business setting this would be a handout to the staff members present.
•Be sure to include a separate Works Cited page
Make sure any outside research sources are cited in APA format (on the reference page and in the text).
Risk Management requires you to identify, asses, and prioritize possible risks. Then you need a strategy to manage the selected threat.
Consider two risk categories: Pure risk and Speculative risk. Pure risk is a chance of loss and no chance of gain (jumping out of an airplane with no parachute). Avoidance and Reduction can best handle these risks. Speculative risk has a chance of a loss or a gain (investments). Transfer and Retention are typically the preferred methods for these risks.
So, the bad news is that you have identified a possible risk or risks to your company. The good news is that all risk can be dealt with using these four specific techniques.
Four Method Map
As the figure shows, you can use the four methods to either reduce the possibility of an event, or you can reduce the impact. In some cases you can do both.