1. What risk can a business face due to a supplier and explain the foloowing risk control steps that a business can put in place regarding its supplier and provide examples: Identify key suppliers of goods, services Identify key markets Investigate alternative suppliers and markets Assess the vulnerability of the supplier and market to loss of assets Assess the ability of the key supplier and market to recover from loss or damage to their assets. 2. Discuss administrative costs. Provide a practical example to explain administrative costs: Clerical costs in the handling of insurance matters The cost of handling self-insured losses The cost of reporting and investigating loss occurrences The cost of an in-house risk management department The cost of a risk management broker 3. Apply the fundamental concepts included in the definition of enterprise risk management (ERM) to a business of your choosing.
1. What risk can a business face due to a supplier and explain the foloowing risk control steps
that a business can put in place regarding its supplier and provide examples:
Identify key suppliers of goods, services
Identify key markets
Investigate alternative suppliers and markets
Assess the vulnerability of the supplier and market to loss of assets
Assess the ability of the key supplier and market to recover from loss or damage to their assets.
2. Discuss administrative costs. Provide a practical example to explain administrative costs:
Clerical costs in the handling of insurance matters
The cost of handling self-insured losses
The cost of reporting and investigating loss occurrences
The cost of an in-house risk management department
The cost of a risk management broker
3. Apply the fundamental concepts included in the definition of enterprise risk
management (ERM) to a business of your choosing.
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