Types of Risks
Types of Risk (cont'd)
Crimes
Management
Extras
100
Caused by changes in overall business conditions, result from a negative shift of the nation's economy.
What is Economic Risks?
100
Caused by human mistakes as well as by the unpredictability of consumers
What is Human Risks?
100
Also referred to as internal theft
What is Employee Theft?
100
A prioritized process in which the risk with the greatest loss and the greatest probability of occurring are handled first, and risks with a lower loss are handled in descending order
What is Risk Management?
100
Allows the identified risks to be ranked by their potential severity and the probability of occurrence
What is Risk Assessment?
200
Risks associated with the environment, include volcanic eruptions, hurricanes, earthquakes, tornados, tsunamis, etc.
What is Natural Risks?
200
Occurs when there is a possibility of loss but no chance of gain
What is Pure Risk?
200
The easiest way for someone to steal from your business undetected
What is Vendor Fraud?
200
Identifies a risk which has a one-hundred percent probability of occurring but is ignored by the organization due to a lack of identification ability.
What is Intangible Risk Management?
200
The most common method of risk management involves transferring the risk to another individual or entity
What is Risk Transfer?
300
Specific to an entrepreneur's business
What is Financial Risks?
300
Innate business risks; can be predicted; occur when there is a chance of either a profit or loss
What is Speculative Risks?
300
Means a business assumes or accepts the responsibility for the negative results of a risk
What is Risk Retention?
300
Used in organizations which have specific goals and objectives; identifies any event which might endanger achieving one of the objectives.
What is Objective-Based Risk Identification?
300
Required in order for a business to achieve its goals
What is Planning?
400
Considered an indicator of a threat
What is Risk?
400
Can be prevented or reduced in frequency
What is Controlled Risks?
400
Allows a business to decrease risk by completely avoiding risky activities
What is Risk Avoidance?
400
Involves the use of scenarios to create alternative ways to achieve an objectives; any event in the scenario triggering an undesired scenario alternative is identified.
What is Scenario-Based Risk Identification?
400
Involves the use of a per-made list which describes the common risk associated with a particular type of business
What is Common-Risk Checking?
500
Are specific to the type of business or organizational structure
What is Business Risk?
500
Cannot be prevented or predicted; are the most devastating form of risk for most businesses
What is Uncontrolled Risk?
500
Identifies whether the risk is internal or external and the potential target of a risk
What is Source Analysis?
500
Breaks down and groups risks into categories based on previous experience and knowledge.
What is Taxonomy-Based Risk Identification?
500
Combines all of the risk checking methods creates an in- depth look at potential risks and risk sources associated with a particular business
What is Risk Charting?