Name: VV 23 - English Vocabulary for Risk Management 2
Uploaded: 2026-01-21T17:06:42.000Z
Duration: 10 min 26 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

You're watching video vocab by businessenglishpod.com this episode of Video Vocab is the second of our two part series on vocabulary related to risk management.

Today we'll focus on the process of risk management planning.

Well run companies have a risk management strategy that they use to help guide the organization and make decisions.

There may be a risk management strategy for the organization as a whole which attempts to account for both external and internal risks to the company.

This planning may also happen on a smaller scale as a part of a project appraisal.

Either way, the purpose is to attempt to predict or foresee all of the different hazards that may negatively impact operations.

Once potential risks have been identified, companies may choose to avoid the risk or to share the risk through what is known as risk transfer.

Risks that cannot be avoided or shared may be mitigated or retained.

Communication is crucial and a risk management strategy will have guidelines for disclosure of information, which is a key component of reputation management.

A good strategy also lays out contingency plans in case of a critical incident.

External and Internal Risks External and Internal Risks External risks are those that exist outside of a company, such as the general condition of the economy and activities by competitors.

Internal risks are those inside of a company, such as problem employees and budget overruns.

An analysis of the company's external and internal risks revealed that there were significant problems.

Project Appraisal Project Appraisal when you examine a proposed project and try to figure out whether it is good or bad, risky or safe, you are doing a project appraisal.

Conducting a project appraisal will help a company determine which projects and products will make money.

The project appraisal showed that the budget was unrealistic and and that the timeline was too short.

Predict Foresee To Predict To Foresee to predict or to foresee is to look into the future and try to guess what will happen.

If we predict changes in the marketplace, in the economy, and

in customers, we can avoid risk and find opportunities.

Smart investors try to predict changes in the market before they happen.

Hazard Hazard the specific situations that might cause damage or harm to a company in the future are called hazards.

Employee dissatisfaction, increased competition, and product failures are all examples of hazards.

Geotech avoided the hazards of large debt by expanding operations very slowly.

Avoid To Avoid to avoid a risk is to not accept it.

In business, avoiding a risk may mean not accepting an agreement or not investing in a particular country or project.

While many banks lost money in the subprime crisis, Morgan holdings managed to avoid any problems.

Transfer to Transfer Risk when we share risk or give it to another company, we are transferring that risk.

Risk transference almost always means buying insurance.

Buying a good insurance policy is one way that companies can transfer risk.

Another way to deal with risk is to mitigate it or decrease the potential damage of a risk that can be avoided.

For example, companies use antivirus software to reduce the probability of and damage from computer viruses.

The effects of the strike were mitigated by the fact that it was a typically slow period in the business cycle.

Retain Retain Risks A company may retain or accept certain risks if they see the potential for profits or advantage.

Some companies choose to retain risks and simply incorporate the potential losses into their budgets.

Disclosure Full Disclosure Disclosure is showing or revealing information, usually negative information about a situation.

The Internal Revenue Service expects full disclosure of all profits and investments.

Reputation Management Reputation Management Companies must pay close attention to their public image and what people think.

This is part of reputation management, which also involves responding to negative media coverage and promoting the business through marketing and branding.

Decker Minerals hired a public relations firm to help them with reputation management.

Contingency Plan Contingency Plan A contingency plan is the planned allocation of resources that are to be used in the event that something unforeseen affects the completion of a project.

When we had a fire at the factory, we put our contingency plan into action.

Now it's your turn to practice some of the words we have studied.

You'll hear a series of sentences with a word replaced with a beep.

Repeat the whole sentence, but say the missing word.

For example, if you A good reputation plan can help a company recover from serious mistakes.

A good reputation management plan can help a company recover from serious mistakes.

We'll play the correct answer after each question.

It is impossible to all of the possible consequences of a business decision.

It is impossible to predict all of the possible consequences of a business decision.

We considered both external and internal in creating our plan.

We considered both external and internal risks in creating our plan.

The safety inspector found several potential in the factory.

The safety inspector found several potential hazards in the factory.

We conducted a complete of the project before signing the contract.

We conducted a complete appraisal of the project before signing the contract.

That's all for this episode of Video Vocab.

Be sure to check out our website at www.videovocab.tv for more videos on business English vocabulary.

Thanks for watching and see you again soon.