TAI LIEU MANG TINH CHAT THAM KHAO

CASE STUDY OF RISK MANAGEMENT

A. City Bus Corporation provides school bus transportation to public schools in Lancaster County. City Bus owns 50 buses that are garaged in three different cities within the county. The firm faces competition from two larger bus companies that operate in the same area. Public school boards gener ally award contracts to the lowest bidder, but the level of service and overall performance are also considered.

a. Briefly describe the steps in the risk management process that should be followed by the risk manager of City Bus.

b. Identify the major loss exposures faced by City Bus.

c. For each of the loss exposures identified in (b), identify a risk management technique or combina tion of techniques that could be used to handle the exposure.

d. Describe several sources of funds for paying losses if retention is used in the risk management program.

e. Identify other departments in City Bus that would also be involved in the risk management program.

B. Chris and Karen are married and own a three-bedroom home in a large Midwestern city. Their son, Christian, attends college away from home and lives in a frater nity house. Their daughter, Kelly, is a senior in high school. Chris is an accountant who works for a local accounting firm. Karen is a marketing analyst and is often away from home several days at a time. Kelly earns extra cash by babysitting on a regular basis.

The family’s home contains household furniture, personal property, a computer that Chris uses to pre pare business tax returns on weekends, and a laptop computer that Karen uses while traveling. The Swifts also own three cars. Christian drives a 2004 Ford; Chris drives a 2009 Pontiac for both business and personal use; and Karen drives a 2011 Toyota and a rental car when she is traveling. Although the Swifts have owned their home for several years, they are con sidering moving because of the recent increase in vio lent crime in their neighborhood.

a. Describe briefly the steps in the personal risk man agement process.

b. Identify the major pure risks or pure loss exposures to which Chris and Karen are exposed with respect to each of the following:

1. Personal loss exposures

2. Property loss exposures

3. Liability loss exposures

c. With respect to each of the loss exposures men tioned above, identify an appropriate personal risk management technique that could be used to treat the exposure.