Study 1 Application Practice Questions Flashcards
Priya is a risk manager who has just been contracted by a company that owns a large private golf course. The company would like her to manage the golf course’s risk so that the patrons, visitors, and employees at the golf course are safe. Before she begins, the company asks Priya to provide a proposal on how to manage the risk
a. Outline the five main steps in the risk management process for this risk. (5 marks)
a. Main steps in risk management:
1. Identify and analyze exposures to determine which perils could occur and result in loss
2. Formulate options of the best technique or combination of techniques for dealing with each exposure; could include loss control techniques to control the exposure to prevent losses or reduce their severity (size), or loss financing techniques to pay for losses that do occur
3. Select the best technique by taking into consideration the golf course’s overall objectives, as well as the cost effectiveness of the program
4. Implement the risk management plan, including the implementation plan, communication plan, and method to allocate costs
5. Monitor results and modify the plan as needed, including setting benchmarks for monitoring results and changing the plan if new exposures develop or are eliminated
(5 marks)
Priya is a risk manager who has just been contracted by a company that owns a large private golf course. The company would like her to manage the golf course’s risk so that the patrons, visitors, and employees at the golf course are safe. Before she begins, the company asks Priya to provide a proposal on how to manage the risk
b. Identify five risk exposures for the golf course. (5 marks)
b. Risk exposures for golf course (marks allowed for other valid responses):
1. Stray golf balls hitting players on the course
2. Heart attack causing personal injury to a golf player while on the course
3. Tainted food being served in the golf course’s restaurant
4. Severe weather events causing injury to players or damage to the course
5. Theft of golf carts
Priya is a risk manager who has just been contracted by a company that owns a large private golf course. The company would like her to manage the golf course’s risk so that the patrons, visitors, and employees at the golf course are safe. Before she begins, the company asks Priya to provide a proposal on how to manage the risk
c. For each of the exposures stated above (part b.), identify how the risk exposure could be controlled to prevent loss or reduce severity, or how a loss financing technique could be used to pay for losses that do occur (since some losses are unavoidable). (5 marks)
c. Control or financing techniques (marks allowed for other valid responses):
1. Stray golf balls hitting players on the course: install nets separating each golf hole
2. Heart attack causing personal injury to golf player while on the course: install emergency contact stations equipped with defibrillators and ensure that all employees are certified in CPR
3. Tainted food being served in the golf course restaurant: ensure restaurant staff are trained in food safety and comply with food safety standards; use trusted food suppliers who support food safety standards
4. Severe weather events causing injury to players or damage to the course: create a policy on when to close the course in severe weather to prevent injury to players or minimize damage to the course
5. Theft of golf carts: set up theft insurance for golf carts, and store unused carts in a garage or secure area
(5 marks)
