1. Give an example of a situation that does not create insurable interest.

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2. Choose a company that you recently have made a purchase from and identify two sources of the companys risk. Write at least two full sentences for each of the following steps the company will take to manage risk:
   1. Company name:
   2. Description of the first source of risk:
   3. Step 1: Identify risks and potential losses
   4. Step 2: Measure the Frequency and Severity of Losses and Their Impact
   5. Step 3: Evaluate Alternatives and Choose the Techniques that Will Best Handle the Losses
   6. Step 4: Implement the Risk-Management Program
   7. Step 5: Monitor Results

8. Description of the second source of risk:
9. Step 1: Identify risks and potential losses
10. Step 2: Measure the Frequency and Severity of Losses and Their Impact
11. Step 3: Evaluate Alternatives and Choose the Techniques that Will Best Handle the Losses
12. Step 4: Implement the Risk-Management Program
13. Step 5: Monitor Results