Risk Management in a Service Business

Abstract

Service businesses, like product manufacturers, face loss exposures‐sets of circumstances that could give rise to losses. The losses may never occur, but the firm must plan for the possibility that they will. Risk management involves the treatment of loss exposures in a cost‐effective manner to protect the firm against losses of a fortuitous nature. The risk management process as it is applied in a service business is described. The process involves a five‐step sequence that service organisation managers can use to detect and evaluate loss exposures, select and implement techniques to treat them, and monitor the results of their efforts. Though the focus is on service firms, many of the risk management ideas discussed are applicable to other types of organisations.

Citation

Hollman, K.W. and Forrest, J.E. (1991), "Risk Management in a Service Business", International Journal of Service Industry Management, Vol. 2 No. 2, pp. 49-65. https://doi.org/10.1108/09564239110144993