Risk Mitigation: Liabilities

Name: Risk Mitigation: Liabilities
Author: Andrew Kovacks

Know how to identify and reduce risks.

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Course: On-Demand

Welcome to Risk Mitigation Liabilities. Risk mitigation plans are designed to outline not only risks to a business, but also the liabilities. In these lessons, you will learn about different liabilities that may affect your business. The contents of offices and buildings are subject to loss risks that can total in the millions, if not properly, inventoried, tracked and maintained on a regular basis. These losses are not solely due to theft, but may have been disposed of without properly accounting for the item. Since some contents are subject to environmental requirements for disposal, tracking this can have a major impact. As an example, fluorescent lights must be disposed of as hazardous waste since they contain mercury and improper disposal can result in losses due to EPA fines and penalties. Computer equipment contains lead and cyanide, which can contaminate landfills if they wind up there. So an asset tracking system, usually as part of an accounting program, is the best mitigation method available for all office or building contents. The bottom line is, what are the risks from contents, regardless of nature, primarily theft and damage. When you consider the first category of contents, it's furniture and fixtures. In many cases, these cannot easily be transported without raising suspicion. So damage or destruction of these are the main loss risks at play. On the disposal side, if an item is destroyed shortly after purchase, it would be too small in most cases to claim under your property insurance program, but you must expend more money to replace it. The main method of mitigation is inventory control. Inventory of disposal, such as perishables in the grocery industry, are subject to the same control or lack of controls, as inventory control. Sometimes the mitigation process is to return expired food items to the supplier or vendor for credit, but other items are not subject to these arrangements. Files and other documents or data are also contents. Backups of data are not the only consideration, since this data cannot be run without software programs. Backing up programs may also require codes from the maker for reinstallation and can be problematic, if older versions are used, sometimes requiring the purchase of the updated version to run your data. Cash and securities, available in numerous forms, have their own unique risks. For example, cash and bearer bonds, can easily be negotiated and used by the individuals who procured them. Petty cash, if not reconciled with receipts, although not a large amount of money, could still be a loss to the company. Bearer bonds should be kept in a secure location, such as a safety deposit box, safe, or other locations that limit access. Bearer bonds are payable to the bearer, so even if you maintain serial numbers on these, it's hard to prove they were your property. Valuable documents, including but not limited to accounts receivables, chattels and titles, require a greater degree of skill to negotiate. But the destruction of these, can cost excessive amounts of money to replace. Two simple mitigation methods for these, are to maintain scanned copies of all valuable documents to a server that is backed up on a regular basis. And the backups are kept off premises, where they cannot sustain damage from natural disasters. The other mitigation method, is to maintain valuable documents in waterproof and fireproof safes or file cabinets. Again, the loss of these can cause excessive amounts of money to replace and it is sometimes covered under a property insurance policy minus any applicable deductible.

Advanced Provider : Andrew Kovacks 8 Lessons · 26m in Arabic, German, English, Spanish, French, Portuguese, Urdu, Chinese

Course Description

Risk mitigation plans are designed to outline not only risks to a business but also the liabilities. Risk, losses, and liabilities come in all shapes and sizes no matter the type or size of your business. No one is immune from disasters, cybercrimes, patent infringement or contract liabilities. All of these factors and many more are taken into consideration when a business drafts its risk-mitigation plan. It’s important when running or owning a business to know how to identify possible threats as well as ways to reduce and prevent them.

In this course, Risk Mitigation: Liabilities, you will learn about different liabilities that may subject your business to significant risks and subsequent losses. We’ll cover several types of threats and how they can impact your business. You’ll also learn ways to mitigate those threats. You’ll also discover how offering a product warranty may cause more harm than good by putting your company at risk of financial losses.

What You'll Learn

Identify and distinguish the different risks that can affect your business
Assess the liabilities that may subject your business to significant risks and losses
Track business contents and understand why tracking contents is important
Define what constitutes a breach of contract
Evaluate the value of warranties and how offering a product warranty may put your company at risk of financial losses
Recognize property losses, professional liabilities, and operational liabilities and ways to mitigate them

Key Takeaways

Risk mitigation plans outline not only the risks to a business but also its liabilities.
Risk, losses, and liabilities affect every business regardless of its type or size, and no one is immune from disasters, cybercrimes, patent infringement, or contract liabilities.
Knowing how to identify possible threats and ways to reduce and prevent them is important when running or owning a business.
Offering a product warranty may cause more harm than good by putting a company at risk of financial losses.
The course covers several types of threats, how they can impact a business, and ways to mitigate them.

Frequently Asked Questions

What will this course teach me about liabilities?

It teaches you about the different liabilities that may subject your business to significant risks and subsequent losses, covering several types of threats, how they can impact your business, and ways to mitigate them.

Who is this course for?

It is for anyone running or owning a business who needs to know how to identify possible threats as well as ways to reduce and prevent them, since risk, losses, and liabilities affect businesses of any type or size.

What topics are covered in the lessons?

Lessons cover Tracking Contents, Intangible Risks, Property Losses, Property Valuation, Contract and Operational Liabilities, Warranties, Security, and Environmental, Professional Liabilities, and a Test Your Knowledge assessment.

Does the course address product warranties?

Yes. You will discover how offering a product warranty may cause more harm than good by putting your company at risk of financial losses, and you will learn to evaluate the value of warranties.

What skills does this course help build?

It supports skills in Business Risk Management, IT Risk Management, Loss Mitigation, Risk Management, Risk Mitigation, and Loss Mitigation Certification.