#7 Notes about “Risk Management” course

Hi all, I continue watching the “Risk Management” course provided by the Alison platform. And here are main items from the Module #8 that I think are worth sharing with you:

  1. Liability risk is the kind of risk which denotes the necessity to pay when making the third party suffer(e.g. auto liability);
  2. Remedy is compensation for a person who suffers from your actions;
  3. The liability risk is twofold — you can be liable to someone and someone can be liable to you;
  4. Plaintiff — is a suffered side, defendant — the opposite;
  5. Tort is the civil wrong.
  6. Contractual liability appears when the conditions of the contract are not applied. A warranty is a sort of barrier for that;
  7. Negligence is acting without the expected rigor which causes harm. To understand if negligence occurred they use Cost-Benefit Approach (it was negligence if the cost of harm is bigger than the cost of avoiding harm). The second option is Proximate Cause — check if the harm is due to the inappropriate behavior of the person;
  8. Assumption of risk is the situation when the person knew about the danger and the risk and still have chosen to act. In this case, the defendant won’t become liable for this action;
  9. Contributory Negligence prevents any recovery for the plaintiff if he neglected the risk;
  10. Comparative negligence: compensation is got by the less guilty person in the ratio of the guilty person;
  11. Last clear chance — if the plaintiff was not the only guilty person and defendant could prevent tragedy, plaintiff can get compensation;
  12. Immunity is the sort of defence agains any law attack (e.g. governmental special departments);
  13. Usually to get the compensation, the plaintiff should prove the negligence of the defendant;
  14. However, there is Res Ipsa Loquitur (the thing speaks for itself). Then the burden of proof lies on the defendant. He should prove that he is innocent;
  15. Vicarious liability appears when employee have made something wrong, and employer has to be liable for that. Strict liability — a person is liable for his events;
  16. Joint and several liability appears when the plaintiff can sue any of the defendants or all of them in one time;
  17. Invitee has the highest safe premises (e.g. buyer), licensee has middle ones (e.g. user), trespasser has no safe premises (e.g. his usage of the property is illegal);
  18. Tenants (or people who use leased property) are also liable in case of injures. Owner can transfer all liability to the tenant via hold-harmless agreement;
  19. Ownership of animals can lead to liability. However, e.g. the tog is friendly and it bites for the first time, you are not liable. If it bites in the second time, you are liable;
  20. Reasons for appearance of the E-Commerce liability: invasion of privacy and identity theft, employee-related risks and harassmenet, intellectual property risks (their infringement), publishing and advertising risks, service denial risks, professional risks;
  21. Doctrine of privity — defender and plaintiff should have the direct contract between them to be sued. The only way for customer to sue company is warranty, however if and only if you have used the product directly by its purpose.
  22. Contingency fee is the amount of money paid to attorney by plaintiff as the reward for his work;
  23. The first step in the E-Risk Management is establishing privacy procedures;
  24. E-commerce liability policy structure: Section 1 (definitions), Section 2 (exclusions), Section 3 (emphasize on the Internet specificity), Section 4 (additional details);

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