Reference no: EM133133670
1. For an organization (or part of an organization) of your choice:
a) List and briefly explain the main pure loss exposures under the following headings:
- Asset Exposures
- Personnel Exposures
- Liability Exposures
- Consequential Loss Exposures
b) For each loss exposure on your list, explain the method that is used by the organization to manage the risk; whether it is (i) controlled or (ii) financed.
c) If the loss exposures identified, to your estimation, is being managed satisfactorily state the reason (s) you think it is. If it is not being satisfactorily managed explain why and provide suggestions on how the management of the risk may be improved.
2. Several types of risk are present in a country's environment. For each of the following identify the type of risk that is present. Explain your answer.
a) The Department of Homeland Security in USA alerts the nation of a possible attack by terrorists.
b) A house may be severely damaged in a fire.
c) A family head may be totally disabled in a plan explosion.
d) An investor purchases 100 shares of Microsoft stock.
e) A river that periodically overflows may cause substantial property damage to thousands of homes in the flood plain.
f) Home buyers may be faced with higher mortgage payments if the ministry of finance raises interest rates next month.
g) A worker on vacation plays the slot machine in a casino.