For this assignment, you will be implementing outcomes to a scenario pertaining to risk management. This situation is based on the following: a renter of a townhome, the landlord – owner of the townhome, and the wooden fence that surrounds the renter’s backyard. The townhome is located steps away from a busy walking path located directly behind the wooden fence. One of the wooden panels on the fence dry-rotted and fell, which allows for a direct view and access into the back yard and porch of the tenant. The renter has asked the landlord multiple times to repair the fence to no avail. The situation worsens after the tenant purchases a scooter to travel to and from work. She does not have a garage and parks her scooter on her back porch. In a one-to-two page paper, explain what would happen if the tenant’s scooter was stolen by associating each of the following risk management methods to her loss: risk mitigation, risk transference, risk sharing, risk avoidance and risk acceptance. Within your paper, be sure to explain who you think would be held responsible.

Risk management is a crucial aspect of any business or personal activity, as it involves identifying potential risks and implementing strategies to mitigate or manage them. In the scenario provided, the focus is on the risk of the tenant’s scooter being stolen due to the landlord’s failure to repair the wooden fence surrounding the renter’s backyard. This paper seeks to explore the potential outcomes of this situation by relating different risk management methods to the loss of the scooter.

Firstly, one risk management method that can be applied in this scenario is risk mitigation. Risk mitigation involves taking measures to reduce the probability or impact of a risk. In this case, the tenant could have taken steps to mitigate the risk of scooter theft, such as purchasing a sturdy lock or installing security cameras on the porch. By implementing these risk mitigation strategies, the tenant could have minimized the chances of the scooter being stolen.

However, in the given situation, the tenant did not undertake any risk mitigation measures, which brings us to the next risk management method – risk transference. Risk transference involves shifting the financial burden of a risk to another party. In this case, the tenant could argue that it was the landlord’s responsibility to maintain the fence and ensure the security of the property. Therefore, the tenant may claim that the responsibility for the loss of the scooter should lie with the landlord. By doing so, the tenant seeks to transfer the risk of the stolen scooter to the landlord.

Another risk management method that comes to play is risk sharing. Risk sharing involves distributing the risks and costs among multiple parties. In this scenario, both the tenant and the landlord may share the responsibility for the loss of the scooter. If the tenant had notified the landlord about the deteriorating fence and the landlord failed to take appropriate action, both parties could be held accountable. Consequently, the financial burden could be shared between the tenant and the landlord.

On the other hand, a different approach to risk management is risk avoidance. Risk avoidance entails taking actions to completely eliminate the risk or refrain from engaging in activities that involve the risk. In this case, the tenant could have avoided the risk of scooter theft by not purchasing a scooter in the first place or finding alternative means of transportation. By avoiding the risk, the tenant would have eliminated the possibility of losing the scooter.

Lastly, the final risk management method to consider is risk acceptance. Risk acceptance involves acknowledging the existence of a risk and consciously deciding to accept the potential consequences. In this scenario, the tenant could be seen as accepting the risk of scooter theft by not taking any preventive measures or finding alternative transportation options. In such a case, the tenant would bear the responsibility for the loss of the scooter.

In conclusion, the loss of the tenant’s scooter in this scenario can be related to different risk management methods. The outcome would vary depending on which method is applied. Risk mitigation, risk transference, risk sharing, risk avoidance, and risk acceptance all contribute to the understanding of the potential consequences and the allocation of responsibility in this particular situation. Ultimately, the determination of who would be held responsible for the loss of the scooter would depend on various factors, including legal obligations and agreements between the tenant and the landlord.

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