Risk Management

ENTREPRENEURSHIP AND SMALL FIRMS DEAKINS AND FREEL 5th EDITION STUDENTS online LEARNING RESOURCE MATERIAL Additional Material: Risk way and the Role of Insurance Although Knight identified the importance of adventure taking, the enterpriser needs to be able to assess which risks to accept and which risks to conveyance of title. In this process, the entrepreneur whitethorn decide to accept some risk, stifle risk through risk management, or transfer risk through policy. As indicated before, however, we know little of the period to which an entrepreneur attempts to perform this function. The availability of damages is important because it enables the entrepreneur to transfer risk instead of accepting the full risk liability. For example, in the case of Hullachan, Craig Coussins, with a manufacturing concern, was faced with a number of risks that muckle prevent the business operating successfully. These included theft of stocks, fire, vilify to vehicles through motor accidents, personal harm from the product and injury to employees and visitors on company premises. All of these risks can easily be transferred through insurance policies and, in some cases, such insurance is compulsory, for example, employers liability. Some risks, of course, are not transferable.

The risk of making losses cannot be transferred through any insurance policy, although it is executable to transfer subsequential losses from some other risk, such as fire. In addition, the management of risk can reduce the extent of insurance needed, and risk can also be rock-bottom by taking a number of measures that prevent the theory of accidents. For example, special training for employees in health and safety may reduce the risk of employee accidents and hence reduce the amount of insurance premium required by the insurance company. © McGraw-Hill 2009 Entrepreneurship and Small Firms, 5/e by Deakins and Freel 1 Some firms are faced with much risks than others. For example, Hullachan represents a... If you want to get a full essay, order it on our website: Orderessay

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