LAW 122 Chapter 1: Chapter 1.docx

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Chapter 1 risk management and sources of law. Risk management is the process of identifying, evaluating and responding to the possibility of harmful events: identification. An accident may generate bad publicity and damage consumer confidence: ex. on pg 3. There are possible costs linked with nearly every form of behavior and includes doing nothing at all. Business cannot exist and not even profit unless it is willing to take some chances: goal is not to eliminate risks but to manage them, appropriate strategy depends on the situation. Risk avoidance: some risked are too serious and must be avoided, ex. on pg 4. Risk reduction: some risks can be reduced to an acceptable level through precautions, ex. on pg 4. Risk shifting: if risk cannot be avoided or reduced, it may be shifted onto another party, 2 important strategies of shifting risks.

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