Buss 324: Risk Management Question Paper
Buss 324: Risk Management
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2011
FACULTY : BUSINESS AND MANAGEMENT STUDIES
DEPARTMENT : BUSINESS ADMINISTRATION
TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE and any Other TWO Questions
Question 1
The Kenya Methodist University is proposing to start a campus in Homa Bay town which is a long Lake Victoria. This campus is also expected to have a floating teaching facility which will provide both scenery view of the lake and accessibility to marine life. It is also hoped that such a floating facility can offer University education to the Island of Rusinga residents. The boat is expected to carry at least 100 people with classes and overnight accommodation for students from Tanzania. It is suggested that every evening it will drop lecturers in Homa Bay town.
Required:
a) As an insurance and risk management expert, identify most of the risks (at least ten) that the University must be aware of and suggest the best way to deal with each risk you have identified. (20marks)
b) Suggest also where insurance is possible, those risks that can be insured and suggest the type of insurance cover (10marks)
Question 2
a) Every organization is faced with one form of risk or another. Explain;
i) The need for identification of the risks (5marks)
ii) The techniques used in the identification of risks (10marks)
b) Explain why we must evaluate risks and state some of the challenges we face in risks evaluation (5marks)
Question 3
a) Risk is viewed differently by various people and organizations. Critically discuss seven human behaviour towards risk and their impact to the organization. Use appropriate illustrations to elaborate the behaviour (10marks)
b) Define risk management and briefly explain the six steps in the risk management process stating areas of emphasis and concern (10marks)
Question 4
a) Discuss the requisites of insurability and explain the rationale behind them (8marks)
b) Explain briefly the six principles governing the insurance contract (12marks)
Question 5
a) Explain six pairs of classification of risks giving examples of each and stating whether they are insurable or not (12marks)
b) Differentiate between the following terms as used in risk management and insurance.
i) Underwriting and claims administration
ii) Peril and hazard
iii) Risk control and risk financing (8marks)
More Question Papers