Q.1 What risk can a business face due to a supplier and what are the risk control steps that a business can put in place regarding its suppliers? Provide examples to illustrate your answer further.

risk control steps

1. Identify key suppliers or goods and services
2. Identify key markets
3. Investigate alternative suppliers and Markets
4. assess the vulnerability of the supplier and Market to loss of assets
5. Assess the ability of the key supplier and market to recover from loss of damage to their assets.

Q.2. Structured Insurance programmes (SIPs) enable the insurer to manage losses in a structured manner through the following characteristics, risk transfer, risk spread/risk combination, aggregate limits, and commutation. Explain these characteristics.