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Bms 202 Risk Management Question Paper

Bms 202 Risk Management

Course:Bachelor Of Commerce

Institution: Pwani University question papers

Exam Year:2013

SEMESTER EXAMINATION FOR THE DEGREE OF
BACHELOR OF COMMERCE
COURSE CODE/TITLE: BMS 202: RISK MANAGEMENT
INSTRUCTIONS
Answer question ONE and any other TWO questions.
Question One
a)Risk management is a process that identifies loss exposures faced by an
organization and it selects the most appropriate techniques for treating such
exposures. These techniques can be classified broadly as either risk control or
risk financing. Discuss.(18 marks)
b)The use of commercial insurance in a risk management program by business
firms in Kenya has certain advantages and disadvantages. Explain clearly the
cited advantages and disadvantages.(12 marks)
Question Two
a)Explain six challenges facing risk managers in the business world today.(12marks)
b)Insurance and gambling are considered alike because there are uncertainty of
events and payment is made when the event occurs but there are certain
differences between the two. Discuss pointing out the difference and similarities,
if any.(8 marks)
Question Three
a)The principle of insurable interest is one of the
most legal principles in insurance.
Explain the purpose of insurable interest.
(6 marks)
b)Explain the characteristics of insurable risks.(14 marks)
Question Four
Explain briefly the special legal characteristics of insurance contract(20 marks)
Question Five
a)Explain what you understand by the term self-insurance as a special form of risk
retention explaining its advantages and disadvantages to risk managers.(10 marks)
b)Risk management has both pre-loss and post-loss objectives. Distinguish the
two objectives.
(10 marks

Bms 202 Risk Management Question Paper

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