The Swift Corporation has $5,000$ sales representatives and employees in the United States who drive company cars. The company's risk manager has recommended to the firm's management that the company should implement a partial retention program for physical damage losses to company cars.

a$.$ Explain the advantages and disadvantages of a partial retention program to the Swift Corporation.

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

c$.$ If a partial retention program is adopted, what are the various methods the Swift Corporation can use to pay for physical damage losses to company cars?

d$.$ Identify two risk$-$control measures that could be used in the company's partial retention program for physical damage losses.

Chris and Karen are married and own a three$-$bedroom home in a large midwestern city. Their son, Christian, attends college away from home and lives in a fraternity house. Their daughter, Kelly, is a senior in high school. Chris is an accountant who works for a local accounting firm. Karen is a marketing analyst and is often away from home for several days at a time. Kelly earns extra cash by babysitting on a regular basis.

The family's home contains household furniture, personal property, a computer that Chris uses to prepare business tax returns on weekends, and a laptop computer that Karen uses while traveling. The family owns three cars. Christian drives a $2010$ Ford; Chris drives a $2015$ Honda for both business and personal use; and Karen drives a $2017$ Toyota and a rental car when she is traveling. Although the family has owned their home for several years, they are considering moving because of the recent increase in violent crime in their neighborhood.

a$.$ Describe briefly the steps in the personal risk management process.

b$.$ Identify the major pure risks or pure loss exposures to which Chris and Karen are exposed with respect to each of the following:

$(1)$ Personal loss exposures

$(2)$ Property loss exposures

$(3)$ Liability loss exposures