Business

Risk
Submitted to
Dr Rashida
 GROUP 12
NAMES ROLL
NO
Md Bilal 59
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Md Faizan 61
Md Haris Ansari 62
Md Maksood khan 65
Mohammad Anas 76

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 Introduction

 Meaning of Business Risk

 Types of Risks

 Nature of Business Risk

 Causes of Business Risk

 Ways to Reduce Business

Risk

 Ways to Transfer Risk

 Business Risk Retention

Meaning of Business
Risk
1].- Business risk refers to the
probability of losses or inadequate
profits due to uncertainties or
unexpected events, which are
beyond control. In simple words, we
can say business risk means a
chance of incurring losses or less
profit than expected.

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2].-For example, demand for
a product may decline due to
change in tastes and
preference of the customer or
due to change in fashion or due
to change in competitor’s
policy etc. these factors cannot
controlled by the businessmen
and these can result in decline
of profit or can also lead to loss

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Types of Business
Risk
 Insurable risk
 Non insurable risk
 Speculative risk
 Pure risk

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Nature of Business
Risk
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Business risk arises due to uncertainties.
Risk is an essential part of every business.
Degree of risk depends upon the nature Insert or Drag & Drop your photo

and size of business

Profit is the reward for bearing the risk
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Causes of Business Risk
.

 Natural causes
Human causes
Economic causes
Physical causes

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 Ways to Reduce
Risk
• Design work areas to reduce the chance of
accident or fire.

• Educate employees on safe use of equipment.

• Check and service safety equipment on a

regular basis.

• Stress the limits of your company’s product.

• Provide customer’s with instruction on the

paper and safe use of product, as well as
warning about possible hazards 9
Ways to transfer risk
 Purchase casualty increase to:
• Protect a business from lawsuits.
• Pays the claim if a person is injured on your
business premises or if a worker causes
damage.
 Purchase life insurance:
• Pay a business in the event of the insured
person’s death.
• Covers owner(s) and key management
employee

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Business Risk Retention
loss
Businesses is self – insurance against business

• If a business cannot or does not

provide for ways to transfer risk
using one of the described means,
the business should set a side
money each month to help cover
the costs should a loss occur.
• Planning for the unexpected, can
save a business.

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 Emergency Planning
Business must
• ….
Create emergency response
plans to help handling
emergency situation more
smoothly.
• Have procedure in place
before a crisis occurs

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Have a nice 13