Management and Organizational Studies 2275A/B Lecture Notes - Lecture 2: Guy Paul Morin, Pierre Trudeau, Self-Insurance

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Risk avoidance do not carry on with that business. Do not do anything that involves a risk for your business. Risks that are high magnitude and high probability of occurring. Risk shifting- put a risk on someone else. Typically, the insurance company; buying insurance who can cover if any problems do occur ex: contract, guarantees (insurance is the most common way. Risk acceptance- self insurance; this is the cost of business so one would assume the risk; aware of the risk and the probability of the risk occurring. Mostly expecting the ones with low magnitude and low probability of occurring. Whenever we talk about the law, we talk about risk. You cannot get off the risk curve (low or high), only get to choose where you are on the curve. First, identify the problem, then evaluate, and then go about your plan. A set of rules, established by the government, and enforced by the government.