Question II

(1) Explain the need for an organization to manage its risk exposures. Give at least three

(2) Explain the main phases of the risk management process.

(3) State and describe three (3) major tools of risk identification, clearly indicating the

advantages and disadvantages of each tool

(4) What is a derivative contract?

(5) Explain the need for an organization to manage its risk exposures. Give at least three (3)

(6) Explain the main phases of the risk management process.

(7) State and describe three (3) major tools of risk identification, clearly indicating the

advantages and disadvantages of each tool.

(8) What is a derivative contracts

(9) Ghana is currently a net importer of oil. However, in about a year or so, Ghana would become a net exporter of oil. In each situation - now and in future, Ghana is and will be exposed to price risk in the oil market. Using exposure diagrams, explain how Ghana may protect herself effectively against this risk using call and put options respectively.

(10) Explain the following concepts and use examples of your own to illustrate them: (a)

Under-insurance

(b)Subrogation rights

(c)Deductibles

(d)Double insurance

(e)Hazard

(f) pril