Risk

1
Risk

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2
What is risk ?

• Risk is the possibility of loss or damage to
  something.
• Its important to lower your risk.
• If you have a lot of speeding tickets you are
  considered high risk and will pay more than a low
  risk person who does not have speeding tickets

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3
Effects of Reducing Risk

• If you make a point to always be punctual to work
  you will more than likely be punctual everywhere.
  Reducing your risk at work could means job
  security.
• Ways to reduce your risk from unemployment is to
  continue your education through
• College
• Professional development
• Save money for emergencies
• Be punctual and professional on the job.
• All of this reduces your risk of unemployment. It
  also allows you to live to work and not work to
  live.

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Effects of Reducing Risk Cont

• To reduce your risk while driving they should
• Not talk or text while driving
• Adhere to all rules of the road
• Dont speed, cut people off, etc.
• Be aware of being safe and reducing risk at all
  times.

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Types of Risk

• Risk Avoidance
• To not become involved or eliminate yourself from
  a situation to avoid the risk.
• Example
• Joel loves to ride his dirt bike. His friend Jack
  wants to ride at Pikes Peak a very dangerous
  hill in their town. Joel tells Jack hell join
  him, but feels that it is a bad idea and at the
  night before he sends Jack a text to let him know
  hes going to avoid the risk.
• Risk Reduction
• To take measures to reduce your overall risk in a
  given situation.
• Example
• Jenny got a flat tire in a bad area on her way
  home from work. Luckily, she has a spare tire and
  her brother taught her how to change a tire. She
  changed her tire in 15 minutes, rather than 3
  hours waiting for a tow truck to come.

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Types of Risk Cont

• Risk Sharing
• To take measures to share your risk with another
  through insurance or risk transfer.
• Example
• We were snowed in for almost two weeks and were
  unable to get out of our cabin. Fortunately, my
  mom had enough emergency supplies for a month so
  we didnt have to worry.
• Risk Retention
• To accept a given risk and prepare for it by
  budgeting.
• Example
• I rented a beach cruiser for a three-day weekend
  trip to the beach but it was stolen. I didnt get
  insurance because it was 25 per day and only had
  to pay 100 to replace the stolen bike.

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Disaster

• Part of financial security is being prepared for
  disasters.
• The federal government recommends having 72 hours
  of worth of supplies in case of a disaster
  however it is best to have a minimum of 3 months
  worth of food, water and supplies.
• It is important to remember that a disaster can
  be natural (something in nature) or caused by
  someone (an attack from another country).

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Disaster Cont

• While the government recommends having 72 hours
  worth of supplies on hand keep in mind the
  following
• It took 5 days to get aid to Hurricane Katrina
  victims in Louisiana.
• It took about a week to get water to victims in
  Haiti.
• While it is recommend having enough supplies for
  72 hours, in a disaster you never know how much
  damage there can be and how difficult it may be
  to reach you.

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Disaster Preparation According to FEMA

• 1 gallon of water per day per person.
• It should be sealed and unbreakable containers.
• A good supply of non-perishable canned foods
• Non-electric can opener
• A change of clothing, rain gear and sturdy shoes
  per person.
• Blankets and sleeping bags
• A first-aid kit

• A battery powered radio
• Flashlight
• Batteries
• Important documents
• Insurance policies
• ID cards
• Birth Certificates and Social Security Cards
• Cash
• Pertinent medical information
• It is important to know your escape route

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Federal Emergency Management Agency (FEMA)

• On March 1, 2003, FEMA became part of the U.S.
  Department of Homeland Security (DHS).
• Mission
• To support our citizens and first responders to
  ensure that as a nation we work together to
  build, sustain, and improve our capability to
  prepare for, protect against, respond to, recover
  from, and mitigate all hazards.

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