Risk Management Analysis Project Spring 2016 This assignment consists of an analysis of a company that you select and a written report of your findings and recommendation. The objective of this project is to identify and analyze a buisness’ risk exposures and help assess how the firm should handle those exposures. This analysis should help students a) understand the steps in the risk management process b) identify risks that are inherent to many small businesses c) explain the possible tools that may be used in risk management d) identify various classifications of risk e) examine how risk imposes significant economic losses upon the business or individuals affected by the business f) learn how to construct a professional report that could be presented in a business setting. To complete this project, students will select a small business, interview the owner or a representative of the business, conduct an on-site analysis of the business, present findings to class, and complete an executive report containing the information below. The project should be completed and presented as if you are the risk manager presenting your report to the board of directors or to the owner of the company. Steps to complete this project: 1. Select a local small business and ask the owner or manager if you may perform a risk management analysis on its exposures. Please let them know that you will not ask for confidential information and that this project will be used only for a course project. You may offer to change the name of the company if that makes the owner more comfortable. Be sure it is a company to which you have access. Often students select a company for which they work or one for which they know the owner or manager personally. You will need to confirm the name of the company that you have selected on the date noted on the syllabus. 2. Follow the steps of the risk management process (these start on Page 1.33 of your text, with a list on page 1.35.), including: a. Make a list of the risk management identification tools you can use to identify the exposures that the firm faces. You will need to use at least four of these identification tools in your analysis. These tools are discussed in Chapter 2 of your text. b. Make a list of all of the information that you would like to get from the company owner or manager when you go for your interview and physical inspection. This step is your roadmap for completing the analysis. c. List everything that you will need to complete your report, such as pictures, surrounding businesses, ownership structure, key customers or suppliers, etc. d. You will want to write a brief questionnaire. The questionnaire as well as the answers you will get from your contact person will be included in your final report. 3. Describe the four key loss exposures from each of the four Risk Management areas (discussed in Chapter 1 of your text). You will have a total of 16 loss exposures. a. Property Loss Exposures b. Liabil ...

1. Risk Management Analysis Project Spring 2016
This assignment consists of an analysis of a company that you
select and a written report of your findings and
recommendation. The objective of this project is to identify and
analyze a buisness’ risk exposures and help assess how the firm
should handle those exposures. This analysis should help
students
a) understand the steps in the risk management process
b) identify risks that are inherent to many small businesses
c) explain the possible tools that may be used in risk
management
d) identify various classifications of risk
e) examine how risk imposes significant economic losses upon
the business or individuals affected by the business
f) learn how to construct a professional report that could be
presented in a business setting.
To complete this project, students will select a small business,
interview the owner or a representative of the business, conduct
an on-site analysis of the business, present findings to class,
and complete an executive report containing the information
below. The project should be completed and presented as if you
are the risk manager presenting your report to the board of
directors or to the owner of the company.
Steps to complete this project:
1. Select a local small business and ask the owner or manager if
you may perform a risk management analysis on its exposures.
Please let them know that you will not ask for confidential
information and that this project will be used only for a course
project. You may offer to change the name of the company if
that makes the owner more comfortable. Be sure it is a company
to which you have access. Often students select a company for

2. which they work or one for which they know the owner or
manager personally. You will need to confirm the name of the
company that you have selected on the date noted on the
syllabus.
2. Follow the steps of the risk management process (these start
on Page 1.33 of your text, with a list on page 1.35.), including:
a. Make a list of the risk management identification tools you
can use to identify the exposures that the firm faces. You will
need to use at least four of these identification tools in your
analysis. These tools are discussed in Chapter 2 of your text.
b. Make a list of all of the information that you would like to
get from the company owner or manager when you go for your
interview and physical inspection. This step is your roadmap for
completing the analysis.
c. List everything that you will need to complete your report,
such as pictures, surrounding businesses, ownership structure,
key customers or suppliers, etc.
d. You will want to write a brief questionnaire. The
questionnaire as well as the answers you will get from your
contact person will be included in your final report.
3. Describe the four key loss exposures from each of the four
Risk Management areas (discussed in Chapter 1 of your text).
You will have a total of 16 loss exposures.
a. Property Loss Exposures
b. Liability Loss Exposures
c. Net Income Loss Exposures
d. Personnel Loss Exposures
4. Make an appointment to visit your company and interview the
owner or manager/contact person. Complete the questionnaire
and get any pictures and supporting documents that are relevant

3. and available. Look for each type of loss exposure during your
personal inspection and document any facts that may be relevant
to your report.
5. Assess the frequency and severity of at least ONE of the loss
exposures you identified in Step 4. You may use hypothetical
data to analyze those two exposures. Use at least one of the
following assessment techniques (discussed in Chapter 2).
Explain your process for obtaining your data or information
(and whether you use hypothetical information), and the
implications of your results. Suggestions on assessing the
frequency and severity are:
a. Complete a Prouty approach diagram with the exposures of
your company
b. Complete a claims distribution table (see page 2.43 of your
text)
c. Calculate the standard deviation of your data and show your
results on a normal curve. Your diagram does not have to be to
scale. You will only need to plot your mean, and your expected
values that are within 1, 2, and 3 standard deviations away from
your mean. (See example on page 2.36 of your text).
6. Carefully consider each of the six Risk Control techniques
and the two Risk Financing Techniques (see summary diagram
on page 1.36; more details are discussed in Chapters 3 and 4 of
your text). Select a risk management technique for two
exposures identified in each of the four RM areas (Step 4). In
total, eight techniques should be recommended. Use each
technique at least once and do not use any technique on more
than two exposures. For example, one of the risk control
techniques is Avoidance. Do not recommend Avoidance as a
means for managing more than two loss exposures.
7. Summarize your analysis by highlighting the most important
exposure overall for the firm and your recommendation on how
to manage that exposure. You may use more than one technique
for the exposure, such as suggesting the company finance an

4. exposure via risk retention through self-funding the employee’s
health insurance while also initiating a risk control initiative
such as starting a fitness program.
8. Write your analysis in a report to turn in and present your
findings to class on your assigned date. Please remember your
presentation and your report should be completed as though you
are presenting and submitting a professional report (Word File
with supporting documents) to the board of directors of a
company.
Project Guidelines
· Use professional tone in writing the report and in the
presentation. Do not use “we” or “our,” my dad, etc. Speak as
though the presentation is being given to the board of directors.
· Include information in your report in the order it is listed in
the rubric.
· Information in the Rubric is needed in the report as well as the
presentation.
· When printing slides, print six per page, and use front and
back of the page.
· Do not include any documents or any information in your
project that are not relevant to a risk management analysis.
· Be specific in your questionnaire. Do not state “Have you ever
had an issue with a client,” etc. Make sure questions are helpful
in the analysis.
· Attendance is required on the dates on which the projects will
be presented. No participation points will be allocated to a
student who arrives late on either day or who is absent on either
day.

5. · Do not use plastic sheet protectors in the report.
· Spell out numbers that are less than 10.
· Proofread the project and overheads before submitting and
presenting. Points will be deducted for typos and grammatical
errors.
Risk Management Techniques
1. Risk Control techniques
A. Avoidance
B. Loss prevention
C. Loss reduction
D. Separation
E. Duplication
F. Diversification
2. Risk Financing Techniques
A. Transfer: Insurance and non-Insurance risk transfer (Hold-
harmless agreements and hedging)
B. Retention
Information that should be included in your Final Report
Include all of the information gleaned during your analysis as
well as your recommendations on how to address each exposure.
At a minimum, the following items should be included in this

6. assignment:
1. The name, address, description of the company, and the
owner or contact person that you have contacted. A brief
overview of the company should be provided, including
information on any adjacent business or personal exposures that
may be impacted by your company. For example, if your
company had been Walt Wheeler Tire Store, you would have
needed to discuss the location, other businesses in close
proximity to the Tire Store, EPA or relevant local regulatory
agencies if any, customer or suppliers on whom the company
may be dependent, and any potential contingent liability
exposure. Included should be a discussion of how any negligent
acts of others may be of concern to the RM of this business. Be
sure to include the corporate structure and explain how that is
important for RM purposes.
2. Provide an example of at least two losses that have occurred
to a business comparable to the one you selected. For example,
if you select a small restaurant, you may research prior losses
for liability claims in the restaurant industry. Provide at least
two examples and citations. This information may help you
identify problematic risk areas in your company’s analysis.
3. Financial information, which may be hypothetical if actual
data are not given. For example, provide estimations of monthly
revenues and costs. When relevant, always note at the top of a
page that data or information presented reflect hypothetical
information.
4. Pictures and additional information or documents that you
obtained while conducting the analysis. For example, this could
include an employee safety or training policy, a health or fire
codes score (such as with a restaurant), or any insurance
information the owner or manager is willing to share with you.
5. A questionnaire of at least five questions for each of the four
RM areas.
6. A list of at least four potential loss exposures for each of the
four RM areas.

7. 7. An analysis and discussion of how you examined the
frequency and severity of at least one loss exposure. For
example, you could include a Prouty approach table with
selected exposures. You may use your discretion in selecting
either property, liability, personnel, or net income exposures for
your Prouty analysis. You may also conduct a brief financial
feasibility report using projected costs and revenues. You may
also use a NPV or IRR calculation with projected costs of a
particular project, such as installing a sprinkler or alarm
system.
8. Identify the most feasible RM technique for two of the four
loss exposures in each of the four areas (those exposures
identified in #6). Please be as specific as necessary. You need
to use each of the risk management techniques at least once.
9. Of the exposures discussed in #8, summarize the most urgent
loss exposure that should be addressed. Explain why you find
that exposure to be the most important for your company at this
time.
10. A summary of your report and measures the business should
be taking in handling their loss exposures.
11. Include a brief discussion on how this project helped you
understand the RM process and the practical information that
you used in completing this analysis.
RISK MANAGEMENT PROJECT
Spring 2016 GRADE RUBRIC
Information needed
Max.
Points
1. Company overview including the key facts about the
company, corporate structure, and surrounding area that are
relevant to RM analysis. Must be turned in by February 17,
2016 and this must be the company you ultimately use for your
project

8. 5
2. Specifically list and briefly discuss four methods you used in
identifying loss exposures.
4
3. Identify and provide a short summary of two losses that have
occurred in the company’s industry as your company. Include
the citation and a copy of the article in the appendix of your
report.
6
4. Pictures and other documents that are relevant to RM, with an
explanation as to how they helped in your analysis.
5
5. Basic financial information (may be hypothetical) with
comment on how the information could be used for RM
purposes.
5
6. Questionnaire of at least five key questions in each of the
four areas (Property, liability, net income, and personnel).
Organize the questionnaire by the four topical areas.
10
7. Discussion on your analysis of frequency and severity of one
loss exposure, such as the use of the Prouty approach or a
forecasting or time value of money analysis.

9. 5
8. List and discuss four of the most problematic exposures from
the four areas. Explain why those are the most problematic.
10
9. Recommendations and discussions of your suggested risk
management technique (see list above) for two loss exposures in
each area identified in Step 8. (a total of eight
recommendations).
8
10. A project summary that reviews the two most urgent
exposures that the company should address.
6
11. Brief discussion on how this report helped in your
understanding of the RM process.
3
12. Professional Report – well written, organized and in correct
order.
10
13. Presentation – Attire and preparation
5
14. Presentation - Professional PowerPoints
5

10. 15. Presentation – turned in report and slides per instructions
5
16. Attendance, participation, quality of questions to classmates
8
TOTAL POINTS
100
Narrative, Thought Experiments, and Cases: Essay Structure
1. Find your case/scene.
2. Determine the facts from the case/scene.
3. Determine the suggested outcome (if any) by the author.
4. Determine which character you will be or comment on.
5. Write Intro (stating pro or con if a suggested outcome is in
the case. If there is no suggested outcome, then state roughly
where you will go)
6. Set out the key practical facts of the case.
7. Set out the key moral, epistemological, metaphysical, and/or
aesthetic issues.
8. Apply the relevant moral, epistemological, metaphysical,
and/or aesthetic issues to solve the case or to resolve the
problem and go through your solution in an introspective
fashion.
9. Conclusion (significance and general import of this policy
that guided your solution).
Criteria for Grading:
A. Is the essay written from a clear standpoint that reflects the

11. personal worldview of the central character chosen?
B. Does the essay engage and develop relevant practical,
professional, and ethical principles?
C. Is there an analysis of the embeddedness of the practical,
professional, and ethical principles?
D. Is there a connection to an ethical theory, epistemological,
metaphysical, or aesthetic principle? Is the connection
adequately developed?
E. Is the context of the personal and shared community
worldviews set out?
F. Is there a clear conclusion to the conundrum of the case
resolved in a decisive way that is supported by developed
argumentation?
ESSAYS ARE TO BE IN TWELVE POINT TYPE AND
DOUBLE SPACED.