monitor the ^^-^^ІьГЖ -iron» Assignments

businesses to their Des^l °P^p _{d forces} that affect. I. Answer the questions.

comprises the «поп-соппоііашс — 1. What effect could a cost -conscious finance department have on a

company' s markets and marKeting. aarketing plan?

of a particular risk. Objective of risk management is to reduce different risks to the level accepted by society. It may refer to numerous types of threats caused by environment, technology, humans, organizations and

Vocabulary

to integrate - об'єднувати, містити

risk assessment - оцінювання ризику olitics

opportunity costs - витрати в результаті прийнятого альтерщР _{Intangible risk management} i_den'tiriesa new type of risk-a risk that

тивного курсу; втрата прибутку через невикористання альтср^ _{& т% probabmty of occurring ш is { d by the organization}

нативного курсу _{due t0 a lack Q}f identification ability, Art^exafeiple, when deficient

mitigation of risk- пом'якшення наслідків ризику knowledge is applied to a situation, a knowledge risk materializes.

intangible risk-нематеріальний ризик Relationship risk appears when ineffective collaboration occurs.

knowledge risk - ризик необізнаності Process-engagement risk may be an issue when ineffective operational

relationship risk-ризик відносин procedures are applied. These risks directly reduce productivity of

knowledge worker-працівник розумової пращ knowledge workers, decrease cost effectiveness probability, service

cost effectiveness - ефективність витрат reputation, brand value, and earnings quality.

brand value - цінність торгової марки < _{ЛРШТІЙН0}, Risk management also faces difficulties of allocating resources. This

is the idea of opportunity cost. Resources spent on risk management ould have been spent on more profitable activities. Ideal risk anagement minimizes spending while maximizing the reduction of the egative effects of risks. After establishing the context, the next step in the process of fanaging risk is to identify potential risk. Risk identification can start ith the source of problem, or with the problem itself. Risk sources may >e internal or external to the system that is the target of risk ₃₀5_OB'_jj_3afianagement. Examples of risk sources are: stakeholders of a project,

abuse of privacy information - зловживання конфіденційної * &

інформацією

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^{п l}\_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.

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'

insurance falls in this category. Risk retention is a strategy for sm - an action taken to prevent another action from having a harm

risks where the cost of ensuring against the risk would be greater offect;

time than the total losses sustained. All risks that are not avoided - the act of keeping something;

transferred are retained by default. War is an example since m - a set of instructions secretly put into acomputer that can destroy

property and risks are not insured against war, so the loss attributed formation stored in the computer;

the war is retained by the insured. _ the sets of programmes put into a computer when you want it to do

Risk transfer means causing another party to accept the riip_artj_cu]i_ar j₀^.

typically by contract or by hedging. Outsourcing is another example _ _{strategy fOT gmaU risks where the cost of ensuring against the risk}

mk transfer where companies outsource IT, business processes, etc. _{ouM be QyQr} ^ ^ ^ ^ _{losges sustainecL}

Го control or take countermeasures against risks a compa

management should approve a risk mitigation plan. The plan shot

propose applicable and effective security controls for managing t ^UL Give English equivalents:

risks. For example, an observed high risk of computer viruses could серіальний ризик, пом якшення наслідків ризику, управління

mitigated by acquiring and implementing anti virus software. A _g0^13HKaMH> працівники розумової пращ, компроміс, альтернатива,

risk management plan should contain a schedule for _Сопй^ІЗИКУ^вати> самострахування, програмне забезпечення, первісний

implementation and responsible persons for those actions. ^Іан' отримувати, передавання ризику, комп'ютерний вірус, купу-

Initial risk management plans will never be perfect. Practif^TH власність, уникати, негативний вплив, нести втрати, приймати

experience and actual losses results will necessitate changes in the рїзик, утримати ризик, допускати ризик, визначати ризик, оцінюва-

and contribute information to allow possible different decisions tor ризик, реалізувати план.

made in dealing with the risks being faced.

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