RMIN 317 Lecture Notes - Lecture 1: Risk Aversion, Calgary Transit, Westjet

• School: University of Calgary
• Department: Risk Management and Insurance
• Course: RMIN 317
• Professor: Anne Elizabeth Kleffner

Document Summary

What is it: variability in outcomes, significant loss coupled with uncertainty. Earnings/human capital (ability/potential to earn money; our biggest asset) Financially responsible for consequences of owning car, home, boat, personal actions. High level risks that the company thinks about. Hazard risk outcomes are such that, there"s either a loss experienced by the organization or there"s no loss; no opportunity for a gain/profit yielding outcome. Speculative = risk that could yield a positive or negative outcomes i. e. airline company input is fuel. Increase in fuel price lowers revenue for the airline; but if fuel price goes down revenue goes up. Identify which of the following are hazard risks, financial risks, operational risks, and strategic risks for royal cuisine. Risk of inventory shortage on a busy day. Risk of decreasing consumer demand dude to changing preferences. Risk of customer illness due to contaminated meat. Risk of decreasing revenues due to increasing food prices. Risks of employee injury from the deep fryer.