Immaterial assets - нематеріальні активи

to tolerate - допускати

retention - збереження, утримування

to terminate - покласти край

trade-off- компроміс, альтернатива

to carry risk - ризикувати, нести ризик

утримувати через невиконання

to retain by default

(дефолт)

self-insurance - самострахування

sprinkler - вогнегасник

transfer - передача, передавання; передавати

outsourcing - аутсорсинг (залучення зовнішніх ресурсів)

Risk Management

mployees of a company or the weather over an airport. Risks are elated to identified threats. For example, the threats of losing money, be threat of abuse of privacy information or the threat of accidents and asualties. '

Once risks have been identified they must then be assessed as to

tieir potential severity of loss and to the probability of occurrence. The

imdamental difficulty in risk assessment is determining the rate of

£5^* ^Wccurrence since statistical information is not available on all kinds of

Risk management is the human activity which integrates^гес°В^пl\_st indents. Furthermore, evaluating the severity of the impact is

of risk, risk assessment,

it, ai.

hedging - хеджування, страхування ризику

developing strategies to manage », »._{ften quite difficult for} immaterial assets. Nevertheless, risk assessment mitigation of risk, using managerial ^res^ffi^: ^The ^tegies ^mc Vuld produce such information for the management of organization transferring the risk to another party, ivoidffig the risk, reducing ^_t ^ _pri_{mary r}jsks _are easy to understand and that the risk negative effect of the risk and accepting some or all of the consequen^g^^ _{decigion щау be prio}ritized.

53

Assignments

I Answer the questions.

1. What is risk management?

2. What does it incorporate?

3. What are its strategies and objectives?

4. What is intangible risk and why is it ignored by organizations?

5. How are other risks characterized?

6. How can risks be reduced?

Following identification and assessment, all techniques to manaj the risk fall into one or more of these four major categories: tolera (known as retention), treat (known as mitigation), terminate (, elimination), and transfer (or buying insurance). Ideal use of the strategies may not be possible. Some of them may involve trade-oi that are not acceptable to the organization or person making the | management decision.

II. Give the terms to the following definitions: activity aimed at prevention or reduction of dangerous accidents or

Risk avoidance includes not performing the activity that could car risk. An example would be not buying a property or business in ord not to take on the liability that comes with it. Another would be 1 flying in order not to take the risk that the airplanes were to be hijacke Avoidance may seem the answer to all risks, but avoiding risks al means suffer defeats losing out on the potential gain that accepting ti. ^ .

risk may have allowed. Not entering a business to avoid the risk of lo _ _i(j^_{tification and quan}tif_lcation of the risk; also avoids the possibility of earning profits^ _ efforts taken to reduce either the probability or consequences of a

Risk reduction involves methods that reduce the severity oi the loi Examples include sprinklers designed to put out a fire to reduce the rF^eat? ,

of loss bv fire ~ something ^mat happens as a result of a particular action or set от

Risk retention involves accepting the loss when it occurs. True seP^n(imons'