1. Risk Management Mrs. Smith 2/10/2014

2. Recession • A Period of temporary economic decline. Trade and Industrial activity are reduced • During recessions jobs are scarce and companies are doing everything they can to protect their reputations. • Inflation • Warranty • Guarantee

3. What is Risk? • A situation exposing itself to danger • A Business Risk is a circumstance or factor that may have a negative impact on an operation or profit of a company. • What type of risks do rap industry deal with that other businesses may not have to deal with? • What happens if a team pays millions for the #1 draft pick and then he is not as good as expected, or they are have a season ending injury? Does that effect profit?

4. Risk Management • A system of identifying, assessing and addressing potential risks in a business in order to prevent or reduce losses. Types of Business Risks • Lifestyles • Incompetence • Natural Disasters • Vandalism • Injuries • Vandalism • Illness

5. Insurance • Liability • Fault • Negligence • Fraud • External and Internal Theft • Incompetence • Outlines an insurer’s contract to pay in case a covered event happens • What if the cover girl make up model experiences burns that damage her face? • What if you are in a car accident (you are at fault) and your car has too much damage to allow you to drive?

6. 4 Steps of Risk Management • Identify • Analyze • Plan • Manage(Proactive and Reactive)

7. Outcomes of Risk management