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Contemporary Social Concerns
Finance & Accounting
Pages 3 (753 words)
Name: Professor: Course Code: Date of Submission: Dr Kallman has identifies seven major techniques that managers should use in managing risks. The first step is to conduct a statistical analysis (Kallman and Maric, 2004). Statistical analysis gives managers the ability to forecast the standard deviations and mean values of the company’s financial ability.
Managers usually accept the results that emanate from the statistical analysis of the organizations data. This is because the information gathered emanates from the real performance of the organization. The second method that Kallman (2003) advocates for is the analysis of a contract. In a business organization, it is a common practice to sign contracts. There are purchases agreements, insurance contracts, employment agreements, etc. Kallman and Maric (2003) observers that these contracts must be carefully reviewed by risk managers for purposes of ensuring that the organization does not expose itself to contractual risks that are unacceptable. Contractual risks include exculpatory waivers/ clauses, or harmless agreements which are not favorable to the organization. Kallman further denotes that the third step is to use surveys and checklists for purposes of building an organizational risks strategy (Kallman and Maric, 2003). An example of checklists includes the insurance checklists. Insurance checklists are provided for free, and the organization completes them for the insurance company (Johnstone and Bedard, 2003). They help in identifying potential risk areas. Risk management surveys on the other hand are very comprehensive. ...
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