| A | B |
|---|
| risk | the possibility of financial loss |
| risk management | the systematic process of managing an organization's risk exposure to achieve objectives in a manner consistent with public interest, human safety, environmental factors, and the law |
| business risks | the possibility of business loss or failure |
| economic risks | type of business risks that occur from changes in overall business conditions |
| natural risks | type of business risks that result from natural causes such as floods, tornadoes, droughts, earthquakes, and unexpected changes in normal weather conditions |
| human risks | type of business risks caused by human mistakes, as well as the unpredictablity of customers, employees, or the work environment |
| insurance policy | a contract between a business and an insurance company to cover a certain business risk |
| extended coverage | optional insurance coverage on a basic property coverage policy |
| fidelity bonds | protects a business from employee dishonesty |
| performance bonds | insurance against losses that might occur when work on a contract is not finished on time or as agreed; also called surety bonds |
