Differentiate between the origins of Risk Management in the USA and in Europe. (5 marks)

Explain what Compliance Risk is and how organizations deal with it. (5 marks)

Summarize the importance of managing risk to the improvement of strategy and tactics in organizations. (10 marks)

Question 2 25 marks

Loraine is trying to sell her house. She has listed the several positive features about the property, she has just paid for the home-owners insurance for another year. She promises that anyone who buys the house will get a free home-owners insurance for a year.

Required:

Evaluate the offer by Loraine [5 marks]

An individual is contemplating quitting his employment. He spoke with his company about his health insurance coverage if he were to resign. The employer asserts that the group health insurance plan (which includes major medical insurance) is convertible to equivalent individual coverage. His wife and children would also be covered by the policy. He subsequently changed his coverage and resigned from his position. Shortly later, his wife gives birth to a kid with a severe medical issue. When the former employee requested compensation for his child's medical expenditures, he was informed that the conversion policy did not cover significant medical insurance. He initiated legal action against his previous employer.

Required:

Discuss if his suit will be successful [5 marks]