Information:

ABC Moving Company is a sole proprietorship owned by Mr. Jay Smith. For the past three years, the company's only employees have been Mr. Smith, who is 46 years old, his 42-year-old wife, and his 20-year-old son. When they need extra help with large moving jobs, they hire high school students and pay them cash. For the past three years, ABC has used one large moving van (2007 GMC 7500) which was purchased used for $30,000 when Mr. Smith started the business. The odometer on the moving van shows 187,000 miles. Mr. Smith was able to pay off the van during the first year of the business. With only one moving van, ABC Moving has limited its services to within a 200 mile radius of its location in Lincoln, Nebraska. After placing an advertisement in the local paper and on the cable television station, ABC has seen its business increase to the point at which it needs to expand. Last month, after working long hours to meet increased demand, Mr. Smith fell and injured his spine. In order to keep insurance costs reasonable, the Smith family had purchased a high deductible insurance plan, and when Mr. Smith was injured, they had to pay $10,000 out of pocket for medical care. Mrs. Smith hired a temporary employee to assist while Mr. Smith was recovering. This week, they learned that although Mr. Smith's recovery is going well, he will no longer be able to do the heavy lifting required in moving furniture. To regain full use of his back, he is going to need to spend several weeks working with a physical therapist. Mr. Smith's injury means that ABC is down to one driver for the moving van, as last year, Mrs. Smith obtained a commercial driver's license (CDL) so that she could drive the moving van. Mr. Smith's son is driving on a restricted license because of several speeding tickets, and he is not eligible to obtain a CDL to drive the truck. In addition, the company cannot afford insurance to cover the Final Project Risk Analysis and Insurance 2013. Any unauthorized reproduction or distribution of this material is prohibited without express written permission. Students are expected to maintain the integrity of the assignment by refraining from reproducing or posting the assignment or their completed work where it can be viewed by current or future students. son because he is under 25 and has several tickets. ABC is going to need at least one more full-time employee and two temporary employees to accommodate its schedule for the next few months. As part of his marketing campaign, Mr. Smith committed to providing moving services within a 500 mile radius of Lincoln, more than doubling the area previously covered by the company. To accommodate the need to move beyond the three-county area, Mr. Smith purchased two used box trucks, a 2007 International 4300 with 102,000 miles and a 2011 Isuzu NPR with 85,000 miles. Mr. Smith financed the cost of the trucks ($80,000) using an equity line of credit he had established as a second mortgage against the office building where the company is located. The equity line of credit has an interest rate of 5.65 percent. The first mortgage on the office building is for $75,000 at 6 percent APR. Last year, the office building was appraised at $175,000. Mr. and Mrs. Smith's home was not used to finance the business because the home declined in value from $450,000 to 300,000 because of the downturn in the housing market in Lincoln. They owe $190,000 on the mortgage. Mr. Smith is very concerned about the future of ABC Moving. On the recommendation of a friend, he hired you to evaluate the risks associated with the expansion of ABC Moving and to design a plan for mitigating these risks.

Based on the above information, need help with following:

1. The five major risks faced by ABC Moving Company

2. Risk mitigation strategies for each of the five major risks

3. The metrics, financial implications of the risks, and the risk mitigation strategies

4. Legal issues related to the risks and the risk mitigation strategies

5. Two opportunities that exist for ABC Moving Company

6. The insurance needs of the company, including business property and liability, health, life, and retirement

7. A plan for organizing and implementing an enterprise risk management (ERM) function for the organization