Sally Smith has bought a gymnastics school and may teach no more than 150 students per month. Ms. Smith is concerned about liability exposures as well as earning enough revenue to be profitable. For each of the following risk management techniques, describe a specific action using that technique that may be helpful in dealing with the school’s liability exposure.Loss ReductionAvoidance:Loss prevention:Noninsurance transfers: There are several steps in the risk management process. Explain each of these steps and discuss why you consider one specific step the most important to a successful risk management program.
Sally Smith has bought a gymnastics school and may teach no more than 150 students per month. Ms. Smith is concerned about liability exposures as well as earning enough revenue to be profitable. For each of the following risk management techniques, describe a specific action using that technique that may be helpful in dealing with the school’s liability exposure.
Loss Reduction
Avoidance:
Loss prevention:
Noninsurance transfers:
There are several steps in the risk management process. Explain each of these steps and discuss why you consider one specific step the most important to a successful risk management program.
The risk management process can be explained as the process or framework of the activities or actions that are required for managing and minimizing the risk in the process. There are many risks that are associated with the project like market risk, environmental risks, legal risks, regulatory risks, etc. Some of these risks can be managed but some risks are not in control of the organization, so in that case, the company needs to be prepared and try to minimize the risks.
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