文档介绍：Unit 9 Risk and Crisis Management A bird ’ s-eye view ? Defining risk ? Risk management ? Enterprise risk management ? Crisis and crisis management What is risk? The The possibility possibility of loss, injury, of loss, injury, disadvantage or destruction. disadvantage or destruction. ““ Anything that Anything that can can go wrong go wrong will will . .”” Decision-making under Uncertainty ? Decision must be based on the balance of both reward and harm related to the particular time and circumstances . There Is No Business Without Risk ? FINANCIAL: cash, credit, and negotiable instrument ? HUMAN: knowledge, skills, commitment of staff ? PHYSICAL: land, building, and equipment ? INTANGIBLE: reputation and brand Why take risks, though? Risk & Return Risk & Return trade-off trade-off trade-off trade-off Risk Management ? Definition: A process which supports better decision-making by creating a greater understanding of risks and their impacts. Risk Management Purpose: ? To improve safety, quality, and business performance. To increase firm value. ? Cannot eliminate risk but to put people in a position to make sound decisions about when and where to place bets. Risk Management Techniques: ? AVOID ? DIVERSIFY ? CONTROL ? SHARE ? TRANSFER ? ACCEPT Enterprise Risk Management ? ERM is the application of basic risk management principles to all risks facing anization.