| A | B |
|---|
| risk | The possibility of financial gain or loss or personal injury |
| natural risk | hurricanes, tornadoes, and other types of events that cannot be avoided |
| human risk | Can result from customer dishonesty, employee theft, and employee incompetence. |
| economic risk | This is faced by businesses such as changes in the business environment. |
| pure loss risk | If an NFL player is injured and cut from the team, they suffer this type of risk because there is no possibility of gain. |
| speculative risk | When people invest money in the stock market, they are taking this type of risk because the outcome is unknown... they may make money or lose the money they invested. |
| Controllable risk | This type of risk occurs if a loss can be prevented or the likelihood of its occurrence reduced. For example, the NFL designing helmets that protect players from concussions reduces the likelihood of injury. |
| uncontrollable risk | A risk that cannot be controlled such as a natural risk. If a tornado destroys a football stadium, this type of risk occurs. |
| insurable risk | A risk in which the chances of a loss are predictable and the amount of the loss can be estimated. Fire insurance is available because the likelihood of a fire and the average dollar amount of loss from the fire can be calculated using statistics of similar losses. |
| uninsurable risk | This type of risk occurs when there is a chance that loss could occur, but the amount of the loss cannot be estimated. |
| risk management | This involves preventing, reducing, or lessening the negative impacts of risk. |
| risk management strategies | These include risk avoidance, risk transfer, and risk retention. |
| risk avoidance | Some risks are avoidable through the strategies of careful planning, attention to details, and adherence to legal safety standards. |
| liable | This means that the business is legally responsible for damages and possibly medical costs and other losses suffered by the injured person. |
| risk transfer | Some risks can be transferred to another company or even to the consumer. One method of doing this is to purchase insurance, which transfers some or all of the financial risk to the insurance company. |
| risk retention | Businesses that face uninsurable risks must assume the cost of the risk. As an example, investors in the production of a movie understand that they may not sell enough tickets to the movie to pay for the costs. |
| contingency planning | The preparation for an unexpected emergency. It involves the people and equipment needed to handle various situations, such as out of control fans, accidents, illness and injuries, and/or acts of violence. |
| risk assessment | A step by step process in which knowledgeable safety and security staff identify and prepare to manage risks. |
| Some Steps of risk assessment | Identify potential hazards, determine who might be affected by the hazards, evaluate the options for managing the risk, implement the best option, review the assessment to determine if improvements are needed. |
| The Event Safety Alliance (ESA) | A nonprofit organization that promotes safety within the event industry. |
