Section 3: Introduction to Risk Identification Flashcards
Importance of Risk Identification
A risk must first be identified in order to be properly analyzed, controlled, transferred or financed.
4 Logical Classifications
Property
Liability
Human Resources
Net Income
2 Types of Property
Tangible: Real property, BPP, TIB,
Intellectual: Copyrights, patents, license, trade secrets
Intellectual Property Examples
FLL TPC SRT (I go to the Florida TPC in my SRT)
Franchise
License
Leases and Leasehold Interest
Trade Secret
Patent
Copyright
Service Mark
Registered Mark
Trademark
LOGICAL CLASS - Property - 5 Exposures / 4 Perils / Hazards
Exposures (RIPIL)
- real property,
Intellectual property,
personal property,
intangible property,
Legal interest
Perils (4) BOILT
Basic perils
obsolescence
infringement on intellectual property,
loss of reputation,
Theft
Hazards
- Faulty Wiring, lack of security, neglect in protection, poor public relations practices)
LOGICAL CLASS - Liability - 2 Exposure Types / Perils / Hazards
Exposures
- Types (premises and operations, personal injury, products, statutory)
- Basis (Tort Law, contract law, statutory law)
Perils
- Slip and fall, product malfunction, work-related injury to employees)
Hazards
- Poor housekeeping, poor quality control, lack of safety training and equipment
LOGICAL CLASS - Human Resources - Exposures (6) / Perils (6) / Hazards
Exposures (TIP O BE tipped)
- Temp employees, volunteers, leased employees
- Independent contractors
- Primary clients, suppliers, vendors
- Owners, partners, shareholders
- Board members / officers
- Employees
Perils (TIDDES)
- Turnover from Resignation, termination, retirement
- Illness, on and off Job
- Death
- Disability, on and off job
- Employment Practices
- Strikes or labor unrest
Hazards (PUNT M)
- Poor morale, poor performance
- Unclear personnel practices
- Non-adherence to safety practices
- Terrorist acts or natural aging process
- Management attitudes
LOGICAL CLASS - Net Income - 4 Exposures / 4 Perils / Hazards
Exposures (Loss Loss of SR)
- loss of use of property,
loss of productivity,
reduction of income/ assets,
speculative risk
Perils
3 Other Classes
loss of supplier / customer, weather, market,
fluctuations in financial markets / economy,
gov action
Hazards
- Poor product positioning,
overextension of credit or excessive borrowing,
inadequate investment in research and development
Negligence - Definition
Negligence - Relation to Tort Law
Definition
- the failure to exercise a degree of care that a reasonably prudent person would exercise under similar circumstances
Relation to Tort Law
- Negligence is used by tort law to characterize behavior creating unreasonable risks of harm to persons and property (negligence is one aspect of tort law)
4 Elements that Express Negligence (all need to be present)
DBCD (Dirty Bulk CD)
Duty Owed: Duty must exist by defendant to the claimaint
Breach of Duty: Duty owed was not fulfilled
Causation: Breach of duty must be the proximate cause of the injury / damages
Damages: Actual damages or injury must be the result of the breach. Have to be able to show the damages
4 Characteristics of an Enforceable Contract
C LEG (C the LEG that this contract has to stand on)
- Competent Legal Parties
- Legal Purpose
- Exchange of Legal Consideration (money, goods, services exchanged)
- Genuine Agreement or Assent (willing buyer and seller)
4 Remedies for a Breach of Contract or failure to perform
D(3)IRP
Damages (3 Types)
- Compensatory (Make individual whole again
- Punitive (pay damages to punish the defendant)
- Liquidated Damages (contract stipulates the amount of damages to be paid)
- Injunction
- Reformation of Contract
- Performance
