Managing Risk (LC 2027) (Leaving Cert Business): Flashcards
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10 cards from this deck
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Practise the cards
10 cards from this deck
Definition of risk
Definition of risk
Possibility of something harmful/undesirable happening
Definition of risk management
Definition of risk management
Systematic & planned approach to handle business risks
7 main types of business risks
7 main types of business risks
Tech, production, staff, premises, financial, compliance, strategic
Examples of financial risks
Examples of financial risks
Negative cash flow & bad debts
Purpose of risk matrix
Purpose of risk matrix
Assess risks by plotting probability & severity
Two factors in risk matrix
Two factors in risk matrix
Probability (likelihood) & severity (impact)
Risk avoidance meaning
Risk avoidance meaning
Not accepting a risk & eliminating it entirely
Risk prevention meaning
Risk prevention meaning
Reducing risk likelihood or minimizing its impact
Risk mgmt benefit: reputation
Risk mgmt benefit: reputation
Prevents incidents damaging trust & business reputation
Risk mgmt benefit: innovation
Risk mgmt benefit: innovation
Enables calculated risks & pursuing new opportunities