Title: Explain the concept of risk management.
Course: Entrepreneurship, Advanced (12053-II) > Section: Preparing for Life as an Entrepreneur

Explanation should include

- use of insurance coverage to protect a business from loss
- differences among avoiding, assuming, and transferring risk
- types of risk (e.g., human, natural, economic).

Process/Skill Questions:

- Why is it important to buy insurance for a business?
- What types of insurance do business owners need?
- What business risks are uninsurable?
- How does a business owner determine the appropriate amount of insurance for the business?
- What roles can technology play in protecting a business against risk?
- What security precautions can be taken to manage risk?
- How is customer service related to risk management?
- What are some examples of companies that provide risk management?
- How can risks be transferred, other than to an insurance company?
- What is the difference between controllable and uncontrollable risks?
- What is pragmatic risk management?