Topic 4 Flashcards
(10 cards)
What is a risk?
A risk is the chance of something happening as a result of a hazard or threat which will impact on you, your business activity or planned event.
What is risk management?
It is the process used to avoid, reduce or control risks. There should be a balance between the cost of managing the risk and the benefits you expect from taking the risk.
Why do we need to manage risks?
- The health and safety of employees, customers, volunteers and participants.
- Your reputation, credibility and status.
- Public and customer confidence in your organisation.
- Your financial position.
- The financial position of your clients.
- Plant, equipment and the environment.
What is meant by Due Diligence?
It is the level of judgement, care, prudence, determination, and activity that a person would reasonably be expected to do under particular circumstances.
What is Insurance?
It is an arrangement in which a company or the state undertake to provide compensation for specified loss, damage, illness, or death in return for payment or a specific premium.
What are four types of insurance?
- Professional indemnity insurance.
- Personal accident insurance.
- Public liability insurance.
- Income protection insurance.
What is Professional indemnity insurance?
Generally covers people for legal liability where there has been error, omission or neglect by that person in carrying out their professional duties.
What is Personal accident insurance?
It provides cover in the form of weekly fixed payment if a person is unable to work through an accident and it provides money in the form of a lump sum to people in case of an accidental death or permanent disability.
What is Public liability insurance?
Generally taken out by a person or sporting organisation to protect is against claims made by a third party (like spectator and visitors) in respect of bodily injury or property damage that occurs due to the operation of the sporting organisation’s business.
What is Income protection insurance?
Generally it is taken out by people who have a risk of losing income due to injury or illness. Regular income is covered while the injured person is unable to perform normal work and earn their own normal wages.
