IA 4.0 hours Risk Awareness Course Syllabus
4.0 Elective Hours
There is risk management and there is risk avoidance. Writing exculpatory clauses that say: “I don't do this and I'm not responsible for that, and I'm not a professional in this and that." That is risk avoidance. You can avoid all of the risk by simply shifting it to your client. Then the question is: "If you are doing that, are you a professional? “If you are going to charge clients for expert advice and a high level of service, you need to recognize that you are assuming risk. Real estate professionals assume risk, but they are going to manage it properly. This entails demonstrating that, should anything ever go wrong, you are able to prove that what you did fell within the standard of care for the profession; that is what you had a contract with the client to do.
How much risk can you stand? We know we have risk. Now we need to figure out how we are going to manage that risk. There is a thought process to this. Whether you own your own business or you work for someone else, there is a risk management process. Managing real estate professionals need to consider the: company size; experience and education level of associates; type of market; and competition. Upon course completion, you will have a better understanding of the concept of risk management.