Reference no: EM133315319

Assignment

Entertainment Enterprises Inc. (EEI) is a medium sized corporation which has purchased several facilities across Canada from the current owner. The operation was reputed to be not well run under the previous owner.

In BC (EEI) now owns and operates two theatres. One building is 30 years old of brick veneer construction, and may not meet the new safety codes for theatres, however revenues from the theatres are very good. The other theatre is vulnerable to break-ins because of its location.

There is an option available to EEI to move the older theatre to another newer building, but a less attractive location, which could also affect revenue intake.

In Alberta they own and operate a ski resort. On two of the slopes there has been some recent injuries due to suspected neglect by the owner, with sloppy paperwork for patrons, and unclear signs and warnings. EEI wants to make necessary changes to correct the situation.

In Ontario they own and operate two casinos. The casinos have not been well attended by patrons, because of under-staffing and lack of service. In addition, one casino was robbed twice in the past three years.

In Quebec they own and operate two theme parks with roller coaster rides for kids, and a small restaurant in each. At the theme parks before closing time, they hold open air concerts for teens with group bands performing. Poor equipment maintenance issues and housekeeping, are evident at the theme parks.

In Nova Scotia they own and operate a small zoo with exotic animals. Small boas have escaped from the premises in the past. The zoo also houses some other very venomous snakes and crocodiles. The Zoo's premises sit on very sandy ground, and EEI wants to make it more secure, and is considering alternative measures.

EEI also own ten small jeeps mostly used on their own premises for shuttling people around. The previous owner never had any collision claims in 10 years with any of their vehicles. Collision premiums have increased overall in the provinces by 30% in the last year. EEI wants to consider an alternative to reduce premiums.

EEI is operating with a tight budget, and wants to cut costs where possible in all their operations. They are also very safety conscious.

They hired a new risk manager to review their operations, in order to minimise loss exposures and reduce costs where possible. EEI have also allocated some additional funds in their budget to make necessary enhancement changes.

Outline a risk management plan that the risk manager could implement, that works for the operation in each province, which makes sense, and achieves the goals of the company.

Explain how the risk manager will :

Question i) identify the loss exposures, and describe what they would be.

Question ii) measure the various loss exposures, and describe his findings.

Question iii) utilize some loss control techniques for dealing with the exposures in each province, and describe the selected techniques.

Question iv) use loss financing techniques in order to pay for losses which occur, and describe the techniques to be used.