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Chapter Outline. 1.1 RISK Different Meanings of Risk Business Risk Price Risk Credit Risk Pure Risk Comparison of Pure Risk and Its Management with Other Types of Risk 1.2 RISK MANAGEMENT The Risk Management Process Losses from Pure Risk Risk Management Methods
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Chapter Outline 1.1 RISK Different Meanings of Risk Business Risk Price Risk Credit Risk Pure Risk Comparison of Pure Risk and Its Management with Other Types of Risk 1.2 RISK MANAGEMENT The Risk Management Process Losses from Pure Risk Risk Management Methods Loss Control Loss Financing Internal Risk Reduction Selecting Risk Management Methods to Increase Firm Value 1.3 RISK MANAGEMENT ORGANIZATION H&N, ch. 1
What is Risk? • Two Important Meanings of Risk H&N, ch. 1
Major Types of Business Risk H&N, ch. 1
Pure Risk versus Other Types of Risk • Generalizations: • Pure risk • Price risk • Pure risk • Price risk • Pure risk involves • Price risk involves H&N, ch. 1
The Risk Management Process (1) (2) (3) (4) (5) H&N, ch. 1
Losses from Pure Risk (Figure 1-2) H&N, ch. 1
Major Risk Management Methods (Figure 1.3) H&N, ch. 1