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Risk

Risk. All businesses must deal with different types of risk. Risk is…. A situation that can lead to financial loss for a business Can result in loss of revenue or inventory. Types of Risk. Economic Natural Human. Economic Risk. Nation’s economy takes a downturn

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Risk

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  1. Risk All businesses must deal with different types of risk.

  2. Risk is… A situation that can lead to financial loss for a business Can result in loss of revenue or inventory

  3. Types of Risk Economic Natural Human

  4. Economic Risk • Nation’s economy takes a downturn • Retailers should watch customer behavior and adjust inventory and expenses to help • Products become obsolete • Retailers should be aware of trends and customer buying habits

  5. Natural Risk Retailers should have insurance to protect their buildings, equipment, fixtures, and inventory. • Weather • Hurricanes • Floods • Tornadoes • Earthquakes • Fires • Caused by people • Riots • Civil unrest • Oil or chemical spills • Arson • Terrorism • War

  6. Human Risk Security Safety

  7. Human Risk: Security • Burglary-someone breaks into the store • Theft • Internal-employee theft or employee pilferage • Dishonest employees • Taking cash or merchandise • Retailers can carefully interview and check references for potential employees • External-shoplifting by customers • Stealing • Switching price tags

  8. Human Risk: Security • Retailers can: • Educate their employees with training • Use devices in the store • Mirrors • Two-way mirrors • Sensor systems • No blind spots • Use deterrents like always prosecuting shoplifters • Carefully check vendors • Match invoice with amount of goods received

  9. Human Risk: Safety Accidents involving employees or customers

  10. Human Risk: Safety • Retailers can • Provide a safe environment • Have safety procedures • Provide training • Proper food handling • Proper chemical handling • Maintain the store inside and out • Clean • Repaired • Organized

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