Question1

The Silver Drive company is a taxi operator in Singapore, which owns a fleet of 5,000 cars. The risk manager is considering a partial retention program for physical losses to company cars.

a) Identify the factors that the company should consider before it adopts a partial retention program for physical damage losses to company cars.

b) If a partial retention program is adopted, what are the various methods the company can use to pay for physical damage losses to company cars?

c) Identify two risk-control measures that could be used in the companys partial retention program for physical damage losses.

Question 2

A risk management program must be implemented and periodically monitored to be effective. This step requires the preparation of a risk management policy statement. The cooperation of other departments is also necessary.

a) What benefits can the firm expect to receive from a well-prepared risk management policy statement?

b) Identify several departments within a firm that are especially important in a risk management program.