Bbm 224: Principles Of Risk Management And Insurance Question Paper
Bbm 224: Principles Of Risk Management And Insurance
Course:Bachelor Of Business Information Technology
Institution: Mount Kenya University question papers
Exam Year:2011
Mt Kenya University
UNIVERSITY EXAMINATIONS 2010/2011
SCHOOL OF APPLIED SOCIAL SCIENCES
DEPARTMENT OF BUSINESS AND SOCIAL STUDIES
BACHELOR OF BUSINESS MANAGEMENT
UNIT CODE: BBM 224 TITLE: PRINCIPLES OF RISK MANAGEMENT
& INSURANCE
TIME 2HRS
Instructions
Answer Question ONE which is Compulsory and any other TWO questions
Question One
a) Explain the meaning principles of risk management and insurance (2 marks)
b) Explain the considerations that effect choice between retention and transfer(5 marks)
c) Discuss the various methods of handling risks (15 marks)
d) Outline the characteristics of insurable risk (5 marks)
e) Explain the meaning of enterprise risk (3 marks)
Question Two
a) What are the objectives of Risk Management? (10 marks)
b) Explain the steps in the Risk Management Process (10 marks)
Question Three
a) Consider two vehicles, A and B. A is a petrol transport tanker, with a
probability of fire of 0.05. B is a diesel transport tanker, where the probability
is 0.02. The vehicles are always transporting fuel together that if one catches
fire; there is an 85% chance (.85) that the other will burn as well. Determine
the probability if A starts the fire and spreads it to B - probability (A and B).
(10 marks)
b) State and explain any five techniques of risk identification (10 marks)
Question Four
a) Briefly explain the steps in the Risk Management Process (10 marks)
b) What do you understand by the term captive insurance (5 marks)
c) Outline the role of government in risk management (5 marks)
Question Five
Discuss the principles of insurance (20 marks)
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