UNIT 8.

RISK MANAGEMENT

PRE ACTIVITY: Risk Management

Name: Jessa Mae L. Beboso Score: ___________
Course/Section: BSED English 3-A Date: June 13, 2021

Part I. Multiple Choice

Direction: Write the letter of the letter of your choice provided.

_a__1. Refers to the uncertainty about loss or injury in business.

a. Risk c. Poor management
b. Accident d. Innovative

_d___2. Which of these does not belong to the group?

a. Fire and allied risks c. Marine
b. General liability d. Loss of life

_c___3. People working in a small firm will have to worry about losses due to
sickness, injury, and death called?
a. Business insurance c. life insurance
b. Fire insurance d. Marine insurance

_d__4. Business firms purchase life policies for any or all of the following reasons
except?
a. For use as a fringe benefit for employees
b. To protect the firm against the financial problems caused by the loss of a
key person
c. To aid in transferring ownership rights.
d. To keep control the business

_b__5. Which does not belong to the group?

a. Avoiding the risk c. reducing the risk
b. escalating risks d. shifting the risk

_c___6. This type of risk involves a threat of loss with no chance of profit. Examples
are the risk of fire, robbery, and injuries to third parties.
a. Pure Risk c. Risk management
b. Speculative risk d. risk assumption

_d___7. A fire insurance policy may also provide coverage on allied risks except?
a. Earthquake fire c. Riot and strike fire damage
 b. Explosion d. none of the choices
_c___8. A person who wishes to avoid dying in an airplane crash and never attempts
to board airplanes is an example of?
a. Risk taking c. Risk avoidance
b. Risk assumption d. Risk policies

_a___9. Is an organized strategy for protecting and conserving assets and people. It
helps reduce financial losses caused by destructive or damaging events?
a. Risk management c. Shifting risks
b. Dealing with risk d. Balance the risk

_b___10. Your business might not be directly affected by a natural disaster, you
may still suffer if it affects your suppliers, customers or general location. What type
of risk in business?
a. Direct b. indirect c. Global d. Possible

ACTIVITY PROPER 1: Business Risks

Direction: With your basic understanding supply a word in the cluster map of the
reasons why some businesses fail.

Poor Leadership

Why businesses
Financial Deficit Poor Management
fail?

Poor Business
Strategy
ACTIVITY PROPER 2: Insure against risks
Create your own insurance company and identify the terms and conditions you
want?
Name of The Company:
GREENLife Insurance
Terms:
This insurance pays for the loss of farmers in cropping based on their amount
of capital. It intends to provide aid to the farmers by giving them an amount they
have lost in during the years’ farming. If they don’t wish to continue their insurance
but still insured, they must first complete the whole year duration of their insurance
and can simply not insure their crop for the following years.

Conditions:
In order to be insured, farmers must first insure their crop and pay a price
monthly depending on the size of their farmland as well as the type of product they
produce. Once insured, there is no cancelation of insurance unless the whole year
duration was completed and can later decide not to avail the insurance. It only
covers the loss in cropping caused by any uncontrollable events such as el Niño or la
Niña, typhoons, flooding, or any type of natural disaster, or pandemic.

ACTIVITY PROPER 3: Other risks

Direction: Describe the image below, relate your discussion on how businesses
address the risks, and write your answer inside the note pad below.

What is shown in the image is a business closed due to pandemic.

Both business and consumers are affected, and cannot be able to access
the premises. To address this risk, the business owner may go/sell his/her
product online where not only the costumers in the area can purchase their
product but also customers around the country and could simply ship the
products right to their doors. It could save the customers their time while
staying safe at the same time. The entrepreneur could as well sell their
products in a safe way without risking their safety.
 Post-Activity No. 1: Risk Management
Name: Jessa Mae L. Beboso Score: ___________
Course/Section: BSED English 3-A Date: ___________

I. MATCHING TYPE
Directions: Kindly match the statements in column B with its answer in
column A. Write the letter of the correct answer on the space provided.

Column A Column B
_H__1. Major types of risks A. Kind of life policy providing
protection for a specified time like
one or two years
_I__2. Pure risks B. One that has the cash value that
fluctuates according to the yields
earned by a separate fund
_J__3. Risks assumption C. For use as a fringe benefit for
employees
_G__4. Fire and Allied risks D. loses due to liability claims of third
parties
_A__5. Term life insurance E. An insurance which covers sea
perils and ship cargoes
_B__6. A variable life policy F. Covers employee dishonesty
_C__7. Reason why firms purchase G. Risks that may be covered by
non-
life policy life policies
_D__8. Risks confronting small firms H. Speculative risks and pure risks
_E__9. Ocean marine Insurance I. Threats and loss with no chance of
profit
_F__10. Fidelity bond J. Setting aside an amount
periodically to cover possible losses
 Post-Activity No. 2: Risk Management
PART II. PICTURE ANALYSIS
Directions: Below are the pictures of various risks and practices in business
operation. Kindly examine them carefully and explain each inside the box provided.

What is shown in the picture is the type of internal risk caused by human
factors which is a type of risk that occurs within the organization. It can be
seen in the picture that the risk is taking place within the company and
involving both the owner and employees which means that it is caused by
human factor.

In this photo, explains the direct risk caused by staffing. It can be seen that
there’s an human error or management issue because every person has
their own opinion and they seemed to not working in harmony, or the
employee was assigned with multiple task which he would work on his own
while others have nothing to do and have much time but still can’t do the
task that are supposed to be done by them.

This photo shows a sample of pure risk. It shows that as the business
develop, the chance of risk also increases. The bomb behind the man
represent the future risk that the company may encounter and if it explodes,
there is no chance to gain profit but pure loss for the entrepreneur.
Post-Activity No. 3: Risk Management
Modified True or False: Write True if the statement is true and if other change the
underline words to make it correct.
FALSE- Term insurance 1. Accident policies provides pure insurance no other
benefits are included like accumulation of savings. This limited coverage lowers
premium and makes term insurance more affordable.
FALSE- Credit insurance 2. A machinery insurance policy protects the small firm
against loss that may result from the insolvency of persons to whom extend credit
within the term of insurance.
FALSE- Crime insurance 3. Credit insurance includes possible losses from
burglars, robbery, larceny, theft, forgery, embezzlement, and other dishonest acts.
True 4. Inland marine insurance covers primarily the land or over the land
transportation perils of property shipped by railroads, motor trucks and other means
of transport.
FALSE- Avoiding the risk 5. A person who wishes to avoid dying in an airplane
crash and never attempts to board airplanes is an example of risk management.
True 6. Risk reduction refers to the steps undertaken to lessen the likelihood of a
loss. The best examples is requiring machine operators to wear safety glasses,
gloves, and safety shoes to reduce the risk of injury.
FALSE- Life insurance 7. People working in a small firm will have to worry about
losses due to sickness, injury, and death. This is true with the employees, the
managers, and the owner/s of the firm called non-life insurance.
True 8. Health policies are policies that cover medical expenses related to sickness
and preventive health check-ups.
True 9. Example of general liability insurance is the incidents of death and illness
caused by food poisoning. If these happen to customers of food shops, the owners
of these establishments could be sued.
True 10. Whole life insurance is a kind of life policy providing protection for a
specified Period like one or two years. Benefits are paid only if the insured peril
happens (death, for instance) during the period covered.