02 Jan Introduction to Risk
Week 1 discussion
Introduction to Risk
Every day, individuals take risks concerning their personal and professional lives. Drivers take a risk by speeding on a highway. Students take a risk by not studying for a quiz. Investors take a risk by investing in a stock. Business owners take a risk by offering a new product line. In almost every case, the risk takers have some sort of control mechanism – or management – to equal out those risks (or at least they should). Individuals take the risk to achieve a personal or professional benefit (e.g., getting to work on time, getting more sleep, making money, increasing market share); to what level depends on a myriad of factors, none the least of which involves the level of risk the individual is willing to take.
This class will focus on the management of risk used by businesses operating on a national and global level. Personal risk and investment risk is discussed in other classes. Risk management is of great concern to any CEO or business owner, especially as it pertains to property and liability risks. Before we delve into this subject deeper, provide the class with an example of a risk that you engage in on a regular basis; explain what level you engage and what is your expected benefit.
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