The transportation industry is very competitive and lucrative. Many corporations in this industry are seeking to expand their scope by entering into the transportation of children to and from schools. Though lucrative, this area of the transport industry is hard to break into and the expenses especially as it relates to insurance for the bus and the special cargo (children) it carries can be high.

City Bus Corporation provides school bus transportation to public and private schools in Cornwall County. City Bus owns fifty (50) buses that are garaged in three (3) different cities in the county. The firm faces competition from larger bus companies that operate in the same area. Public and private school boards generally award contracts to the lowest bidder, but the level of service and overall performance was considered.

(A) Briefly describe the steps in the risk management process that should be followed by the risk manager of City Bus Corporation. (4 marks)

(B) Identify the major loss exposures faced by City Bus. (4 marks)

(C) For each of the loss exposures identified in (B), explain a risk management technique or combination

of techniques that could be used to handle the exposure. (10 marks)

(D) Identify TWO (2) other departments in City Bus that would also be involved in the risk management

program.