LAW 122 Chapter Notes - Chapter 1: White-Collar Crime, Liability Insurance, Risk Management
23 Apr 2013
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Risk management- process of identifying, evaluating, and responding to the possibility of harmful events. Identification recognizing legal risk - can we be liable : evaluation assessing legal risk chances of something going wrong , response reaction of legal risk what are we going to do about it . Business probably cannot exist certainly cannot profit without taking chances. Types of risk management: risk avoidances risk so serious that it should be avoided. Withdraw dangerous product from market: risk reduction reduced to an acceptable level though precautions. Modify product to reduce danger: risk shifting if risk can not be avoided or reduced it may be shifted onto another party. Important strategies insurance and exclusion clauses buy liability insurance for losses caused by danger: risk acceptance simply accept risks. Insurance contact in which on party agrees in exchange for a price to pay if another party suffers a loss. Liability insurance benefit of the purchaser is held liable for doing something wrong.
