Author Question: Change is anything that happens in our environment that requires a human adjustment. Indicate ... (Read 47 times)

SGallaher96 · **on:** Jul 7, 2018

Change is anything that happens in our environment that requires a human adjustment.

Indicate whether the statement is true or false

Question 2

What class of risk do employers have to manage? How do employers manage such risk?

What will be an ideal response?

ky860224 · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

T

Answer to Question 2

Answer: How the employer manages a specific risk depends on the class of risk it falls in. For example, internal preventable risks arise from actions within the company and include things like employees' illegal conduct or workplace accidents. Employers manage these risks with methods such as codes of conduct, disciplinary procedures, and safety rules. Strategy risks are risks that managers accept as part of executing their strategies, such as the risk a banker takes that a borrower defaults. Employers manage some strategy risks with independent experts (like those who assess insurance risks) and with internal experts, like the risk managers who help to oversee banks' loan portfolios. External risks come from outside the company and include things like political and natural disasters and terrorism. Managing external risks might involve methods like scenario planning, in which the company endeavors to identify, analyze, and plan for multiple possible eventualities.