Risk Management Strategies
Risk Transfer
Commercial insurance policy covers losses due to employee theft
Risk Financing
A car owner determines that his current income is sufficient to make any needed repairs to his car as/if they happen
Risk Financing
A health insurance policy has a $5000 deductible and the insured sets up a health savings account to pay for any bills below $5000
Risk Financing
A landlord puts aside a portion of each rental payment to make necessary emergency repairs to the rental property
Risk Prevention
Asking a friend to watch your computer while you run to your dorm to grab something
Risk Retention
Choosing to waterski
Risk Transfer
Contract says Company B will reimburse Company A for any losses that occur due to the transaction
Risk Transfer
Contract states homeowner is not responsible for any injuries to workers while painting the house
Risk Retention
Deciding to go without health insurance
Risk Prevention
Installing a burglar alarm in your home
Risk Avoidance
Maintaining customer records on paper to lessen cybersecurity risks
Risk Avoidance
Not owning or driving a car
Risk Retention
Purchasing a home without an inspection of the property
Risk Reduction
Requiring hard hats on construction sites
Risk Prevention
Scheduling an annual service call to clean and tune up your furnace and air conditioner
Risk Avoidance
Shutting down business operation to keep lawsuits from occurring
Risk Reduction
Wearing a helmet while riding a bicycle
Risk Reduction
Wearing a life jacket in a kayak