Use the following information to calculate the cost of risk.

The Chief Risk Officer of Fast Learning Academy Ltd wants to include the total cost of risk for

the company in his presentation at the next board meeting. The information obtained from the

risk managers include the following:

The monthly insurance premiums are R$962500$ per month. The premiums provide insurance

cover for items such as property, furniture and office equipment, business interruption and

liability. The premium for unemployment insurance fund $($UIF$)$ is R$400000$ per month. The

contributions to Compensation for Injuries and Diseases are R$462000$ per month.

The company has submitted several claims through the past year. A total of $120$ laptops were

stolen at an average cost of R$25000$ per laptop. An excess payment of R$3000$ per claim is

applicable for laptops. The academy has a fleet of $40$ cars. An excess of R$5000$ per claim is

payable. The average damage per accident was R$65000$ and $15$ claims were submitted. The

fleet is also equipped with tracking devices with a total cost of R$760000.$

The academy has cyber risk cover for R$5000000,$ with an excess payment of R$50000$ per

claim. The insurance policy states that the insurer must approve all payments for claims to be

entertained. In July, the academy paid a ransom of R$7000000$ for ransomware attack before

notifying the insurer.

The finance departed indicated that R$3000000$ of outstanding student fees had to be written

off as the debtor$$s department did not follow up outstanding debt. EXCO approved a contract

for a debt collector to collect outstanding debt, A payment of R$120000$ was made in the current

financial year.

The budget for the risk management department is R$9000000.$ Risk management staff

attended courses and seminars to the value of R$500000$ and subscriptions to professional

bodies of R$45000.$

The fire suppression systems in the main building were upgraded with a total cost of

R$6000000.$ The total depreciation that can be related to risk management systems is

R$6230000$ for the year.

The academy can earn $4\%$ for money market deposits.