9. Risk Management

1. Before listening You are going to listen to a Business School lecturer speaking about risk management. Before listening match the words on the left with their definition on the right:

1) a holistic approach 2) a spider’s web 3) a strand 4) a scorecard 5) a repercussion 6) to play safe 7) to readjust 8) to interlink

a chart on which you record the score in a game or sports event while it is being played a bad effect that something has, usually lasting for a long time when all the properties of a given system cannot be determined or explained by its component parts alone a pattern forming a unity within a larger structural whole to avoid taking any risk a complicated set of related things, often considered dangerous or difficult to deal with to connect different things with each other, or to be connected with each other to change in order to fit a different situation, or to repair something slightly

2. ҉ When listening Listen to the lecture again and decide whether these statements are TRUE (T) or FALSE (F).

	True	False
1. Companies are not taking the issue of risk management seriously.
2. Companies need to look at the whole picture and at each separate element.
3. The enterprise risk scorecard is made up of four circles.
4. Companies should make accurate predictions about the amount of tax they have to pay.
5. Employees who are trained will increase a company’s productivity.
6. The price of insurance does not affect a company’s business risk perspective.
7. Customer risk perspective includes the numbers of satisfied and dissatisfied customers.
8. Risk management is a simple issue.

3. ҉ When listening Listen to the lecture and do the following tasks:

a) make notes on the three main risk types:

1)__________________________________________________________

2)__________________________________________________________

3)__________________________________________________________

b ) complete the enterprise risk scorecard with the four types of risk perspectives:

A

D B

C

c) make notes on examples of each type of risk perspective (7 words max.):

A) ___________________ risk perspective:

1)__________________________________________________________

2)__________________________________________________________

B) ___________________ risk perspective:

1)__________________________________________________________

2)__________________________________________________________

C) ___________________ risk perspective:

1)__________________________________________________________

2)__________________________________________________________

D) ___________________ risk perspective:

1)__________________________________________________________

2)__________________________________________________________

3)__________________________________________________________

4)__________________________________________________________

4. After listening Choose a company (if necessary invent some detail) and analyse its risks:

1. Wilson Chemicals – a Russian subsidiary of the British company manufacturing chemicals;

2. Comtec Corporation – a small manufacturer of industrial microcomputers and application-specific software;

3. Beatrice Companies, Inc. – a highly diversified producer of processed food, beverages, chemicals and other consumer products in 30 countries.