Each scenario should have the following elements 1. Introduction to risk management a. In the context of your project, how does risk management help a company achieve their long and short term goals?...

1. Introduction to risk management


a. In the context of your project, how does risk management help a company achieve their long and short term goals?



b. How can ERM help in the risk management process?


c. Develop your company risk profile:



i. Size of your company



ii. What is your management’s appetite for risk? Why have you chosen such a risk appetite?


iii. Company resources – What company resources are available to assist you in developing the risk profile?



d. What are your pre and post loss goals?



a. A description of the business



i. Type of business I’ve chosen Hotel Management as my type of business Phoenix Marriott Hotel


ii. Locations: I chose Phoenix, Arizona as my location


iii. Number of employees I just guessed about 50 to 100 employees but if you think I should add more then that’s fine with me.


iv. Revenue I would like my revenue to be $5.5 Million a year but if you feel that I should change it then that’s fine with me.


v. Property and liability exposures



vi. Etc.



b. Corporate goals



i. General business objectives



ii. Sales growth



iii. Risk tolerance



iv. Etc.



2. Identification of risks and exposures



a. What are the risks/exposures your company faces?



b. What are the probable causes of loss suffered by those risks/exposures?



c. What tools will you use to identify your risks/exposures?



d. List and group your risks/exposures into the following categories:



c. Common risk associated with their business



i. Hazard Risks



ii. Operations risks



iii. Financial risks



iv. Strategic Risks



3. Analysis of risk



a. Statistical analysis



b. Loss analysis



4. What risk control methods have you chosen for your company? Explain how you will use the various risk control methods on identified risks/exposures:



a. Avoidance



b. Loss prevention



c. Loss reduction



d. Separation



e. Duplication



f. Diversity



d. Loss experience



i. Past property & casualty losses



ii. Projected future losses



4. What risk control methods have you chosen for your company? Explain how you will use the various risk control methods on identified risks/exposures:



a. Avoidance



b. Loss prevention



c. Loss reduction



d. Separation



e. Duplication



f. Diversity



e. Company risk control strategy



5. Describe your business continuation plan if hurricane Ike damaged your business and also affected the operations of your customers and suppliers.



6. Insurance & risk management program:



a. What type of polices will be required?



b. What limit and retentions will be required to meets your goals?



c. What will be covered under those policies?



d. What happens if you do not have enough insurance in the worst case scenario?



f. Description of current insurance and risk management program



i. Types of policies



ii. Limits/retentions



iii. Deficiencies in the insurance and risk management program



7. Risk monitoring



a. What would you do if 90% of your losses fell within your deductible year after year?



b. What happens if your company’s financial condition changed drastically for the good or worst?



c. What happens if there is a significant change in management that had an effect on the risk philosophy of the company’s risk appetite?



d. What happens if the availability/ affordability of the cost/risk transfer pricing of risk financing options changed?



g. Anything else you can think of that would make the project worthwhile.



2. Scenario should be about a 2-3 pages long. (3 pages max)



3. Please use the questions in this outline to create your scenario so that students will have enough information to answer the question.


8. For your conclusion, summarize what you have learned from this project and from the class in general.