Ch 9: Financial Risk Management & Mitigation

About This Chapter

Get the knowledge boost you need to excel on an exam, assignment or project covering financial risk management and mitigation by exploring this entertaining chapter. Take advantage of bite-sized lessons, short quizzes and other study tools you can access anytime!

Financial Risk Management & Mitigation - Chapter Summary

Studying the basics of financial risk management and mitigation is fun and simple with help from this engaging chapter. Our instructors have developed short lessons you can study at your own pace to gain greater insight into risk assessment, swap contracts, differences between risk avoidance and risk mitigation and ways to manage risk. Gauge your comprehension of important lesson concepts by taking multiple-choice quizzes. Any questions you develop during your studies can be submitted to our experts via the Dashboard. These study resources are available 24/7 using any computer, smartphone or tablet. When finished with this chapter, you will be able to do the following:

  • Showcase an understanding of insurance policies and risk management
  • Provide descriptions of insurance coverage for various types of risk
  • Share examples of the agency problem in finance
  • List and discuss methods for responding to risk as it happens
  • Identify and discuss different types of financial risk
  • Differentiate between risk control and risk management
  • Describe the agile approach to risk management
  • Detail risk management strategies and discuss risk and return in insurance

12 Lessons in Chapter 9: Financial Risk Management & Mitigation
Test your knowledge with a 30-question chapter practice test
Understanding Insurance Policies and Risk Management

1. Understanding Insurance Policies and Risk Management

Obtaining insurance is one of the most common methods of risk management. In this lesson, you'll learn about insurance policies and some key concepts related to insurance. You'll also have a chance to take a short quiz.

Insurance Coverage for Various Types of Risk

2. Insurance Coverage for Various Types of Risk

Businesses operate in a world of risk. One of the best ways to manage risk is through insurance. In this lesson, you'll learn about the types of insurance coverage available to businesses to help them manage their risks.

What Is a Risk Assessment? - Process, Methods & Examples

3. What Is a Risk Assessment? - Process, Methods & Examples

What is a risk assessment, and why would we prepare one? In this lesson, we'll learn what it is, why it's needed, and how to prepare a risk assessment and rank potential risks for our business.

What is a Swap Contract? - Definition & Examples

4. What is a Swap Contract? - Definition & Examples

This lesson describes and explains the mechanics of interest rate swaps and other swap contracts. You'll also learn how swaps are used by borrowers and investors to reduce risk, add risk, or exchange one type of risk exposure for another.

The Agency Problem in Finance: Definition & Examples

5. The Agency Problem in Finance: Definition & Examples

The agency problem can be a really big issue in the finance world. Find out what an agency problem is and look at some real-world examples. Then, test yourself on your new knowledge.

Risk Avoidance vs. Risk Mitigation

6. Risk Avoidance vs. Risk Mitigation

As a project manager, you cannot ignore project risk and have to choose an effective strategy for dealing with each risk. In this lesson, we compare two risk response strategies: risk avoidance and risk mitigation.

Methods for Responding to Risk as it Happens

7. Methods for Responding to Risk as it Happens

Risk is something we all encounter, just ask the insurance industry. Project managers have effective methods they use to manage risk. In this lesson, we will discuss several of these methods.

Financial Risk: Types, Examples & Management Methods

8. Financial Risk: Types, Examples & Management Methods

In this lesson, you will explore the various types of risks faced by a business and understand how financial risk is different from other types of risks. Then, you will learn about the different types of financial risks and methods to manage them.

Ways to Manage Risk: Insurable and Uninsurable Risk

9. Ways to Manage Risk: Insurable and Uninsurable Risk

Risks abound in life and in business. However, most risks can be managed. In this lesson, you'll learn about ways to manage risks. You'll also learn the difference between insurable and uninsurable risks. A short quiz follows.

Risk Control vs. Risk Management

10. Risk Control vs. Risk Management

In this lesson, we will clarify the difference between risk management and risk control. We will also describe a five step process commonly used in risk management. In addition, we will highlight four basic categories of risk controls.

The Agile Approach to Risk Management

11. The Agile Approach to Risk Management

In this lesson we will review the basics of Agile project management and then explore how the Agile process itself efficiently addresses risk management.

Risk and Return in Insurance & Risk Management Strategies

12. Risk and Return in Insurance & Risk Management Strategies

In this lesson, we'll define risk and return as it relates to the insurance industry, and you'll understand the correlation between the two. We'll also explore three risk management strategies and give examples of each.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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