Risk Management At The Wright Air Conditioning Company Essays

1326 Words Dec 9th, 2015 6 Pages
Companies, people are exposed in various risks, risk management’s job is to identify the risk and determine which method we should do. There are the tasks that a risk manager would perform at their job: identify the value of the assets, what risks might occur, and how much are the losses; decide whether to purchase insurance coverages, transfer, or to avoid them. The goals of risk management are to minimize the losses and expenses in the worst case scenario. Risk managers are responsible for managing the risk of the firms, employees, customers, assets, etc. In the following, I will analyze and make recommendations about Mr. Wright and Mrs. Wright case.
I would like to start off with the Wright Air Conditioning company. First, Wright Air Conditioning need to purchase a General Liability Insurance, which will protect the company from legal claim that might occur from accidents, potential liability, and damages to the company assets. For example, a customer get hurt from the A/C unit that your company installed, this insurance will cover the medical bill and expenses. General liability insurance also protects the company from financial losses, and damages from natural disaster. However, Wright Air Conditioning does not need a separate general liability policy through Lloyds of London because it is covering only the premises of the building. I think Mr. Wright’s idea of spreading the inventory in different places is very good. However, he should upgrade those storage for risk’s…

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