LAW 122 Lecture Notes - Lecture 1: Property Insurance, Primary And Secondary Legislation, Critical Role
15 Apr 2017
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Document Summary
Chapter 1 risk management and sources of. Many factors affect the success/failure in business such as decision-making which includes location choice, product, marketing. People study it because legal factors affect the profits and losses in a business. Also, for every business decision, there is a legal consequence. Legal education plays a critical role in risk management, which is the process of identifying, evaluating, and responding to the possibility of harmful events. The goal is not to eliminate risks, but to manage it using the following strategies: Risk avoidance some risks are so serious that they should be completely avoided. i. e. automobile regularly explodes upon impact. Risk reduction some can be reduced to an acceptable level through precautions. i. e. bank protecting itself again loans that may not be repaid. Risk shifting a risk can be shifted onto another party. 2 strategies for shifting risk are insurance and exclusion. Risk acceptance sometimes it"s appropriate to simply accept the risk.
