Reference no: EM133264473

Assignment:

Case: The Jones Construction Company builds high end custom homes in California. Most of the construction staff are highly trained and considered true craftsmen. Currently Jones is building 25 custom homes. Construction staff are furnished the necessary tools and machinery onsite to do their jobs. During the past 12 months, there has been a 200% increase in tool and small machinery thefts which have been reimbursed by their insurance company, Gordon Insurance. It is now time for their policy renewal. Gordon has informed Jones's agent, Bill, that their theft deductible will increase to $5,000 per claim and the premium will increase 25%. Bob Jones, Jones Construction owner, is upset at the number of claims and premium increase.

Definition:

Risk Manager - an individual responsible for managing an organization's risks and minimizing the adverse impact of losses on the achievement of the organization's objectives. The risk manager is charged with identifying risks, evaluating risks, selecting the best techniques for treating identified risks, implementing the chosen risk management techniques, and regularly evaluating and monitoring the program.

Your Task: You are the Risk Manager and Bob has tasked you with coming up with a solution to stop the thefts so he can negotiate a lower deductible and little or no premium increase. a memo to Bob giving him two options for reducing the theft. Pick what you think is your best option and state why you feel it is the best.

Put your name in the from section of the memo.

Expected Student Outcomes: 1) clearly and concisely state the business problem along with any assumptions as needed; 2) analyze the advantages and disadvantages of two possible solutions to the problem; and 3) recommend the solution that will best meet the organization's business objectives. Demonstrate understanding of case analysis and the elements of persuasive communication.