Preparing Risk Management Guidelines Assignment

Preparing Risk Management Guidelines - Assignment Example ated and economical application of resources to minimize, monitor and control the probability and /or impact of unfortunate events (Howells & Schulze, 2009, p. 89). There are various causes of business risks such as natural causes, financial risks, market risks, credit risks, accidents, legal liabilities, and projects failures among others. A business should have well defined strategies to manage and control various risks that may occur in business including the contractual and vicarious liabilities (Austen-Baker, 2011). The risk management guidelines will help the business management to establish resources for designing and delivering professional and effective risk management strategies during execution of business its operations. The parties in a contract must follow the right channel of communication in order to minimize liability. For example, if some conditions arise that makes discharge of the contractual duties impossible or delayed the party should communicate with the other party immediately and agree on the best course of action to take (Austen-Baker, 2011). The most common methods of managing risks in business includes averting of risks, transfer of risk to a third-party such as insurance, reducing the negative impact of risks and acceptance of some or all consequences of risks (Stone & Devenney, 2014). The parties to the contract should do all they can to avoid the occurrence of risk during the implementation of the contract. If one party failed to perform according to the contract and the other party had an opportunity to mitigate the loss suffered due to partial performance or lack of performance of the contract, both parties will be held responsible, and the offended will be liable for contribut ory negligence. The damages that the offender can pay in such a case are reduced by the amount of damage contributed by the offended person as stated in the case of Nettleship v Weston [1971] 2 QB 691 in which the trainee driver was held partly accountable

Case6 Article Example | Topics and Well Written Essays - 250 words

Case6 - Article Example For this reason, the state has encouraged several new fund-raising suggestions, including the one advanced by Governor Arnold Schwarzenegger. He has tried to find new firefighting funds with an insurance surcharge on all home and business owners that would likely raise $130 million extra yearly. Some of the cash will be used to cover the cost the state’s fire department called Cal-Fire This is a general alternative that the state would have to finance state services in California because since Cal-Fire’s budget comes widely from the state’s general fund incurred by all California’s taxpayers. According to San Diego senator, Christine Kehoe, the citizens are not paying enough for fire protection and argue that frenzied buildings in rural areas increase the burden of state of firefighters. In this regard, the senator has introduced a bill in the state legislature similar to what the LAO is proposing an annual fee paid by resident who live in rural areas to help offset the cost of firefighting. CalFire’s mission has changed as well. The service is mandated with protecting 31 million acres of wild land which includes the states timber stands, watershed and huge agriculture lands. CalFire protects lands that benefit the public in general. I agree with the sentiment that fire fighting could be financed by tax. The local government of respective states should introduce tax on people so that whenever fires break out, it can be easily contained because of the availability of fire fighting resources. It is rational to argue that if there was a taxpayer staying in the place with no or little risk of a fire or wildfire, they should be able to pay for services if a fire or wildfire was close their home. If this could be the case, I think that Tennessee could get ways to utilize those funds to enhance firefighting in where they lack the resources. I concur with the argument that If a charge for service was introduced, it would have to be conducted