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Dpba 014: Risk Management Question Paper

Dpba 014: Risk Management 

Course:Risk Management

Institution: Kenya Methodist University question papers

Exam Year:2008





KENYA METHODIST UNIVERSITY

END OF SECOND TRIMESTER 2008 EXAMINATIONS

FACULTY : BUSINESS AND MANAGEMENT STUDIES
DEPARTEMENT : BUSINESS ADMINISTRATION
COURSE CODE : DPBA 014
COURSE TITLE : RISK MANAGEMENT
TIME : 2 HOURS


INSTRUCTIONS:
• Answer Question ONE (Compulsory) and any other TWO Questions

Question 1
“There is increasing awareness in business circles of the fact that without proper management of risks before too long, there would be no business to manage”.
(i) Explain the term ‘Risk” relating to business organizations (4 marks)
(ii) Name and explain classifications of risks (16 marks)
(iii) What do you understand by the term “Risk Management” (4 marks)
(iv) Name and explain post-loss objectives of Risk Management (16 marks)

Question 2
(a) Who is a risk manager (2 marks)
(b) Explain six functions of a risk manager (12 marks)
(c) Enterprise risk management and project management are major areas of risk management. Explain activities in project management that require risk
Management (12 marks)
(e) Explain risks which is termed insurable by insurance firms (4 marks)

Question 3
(a) Explain common methods applied by organizations in dealing with risks (20 marks)
(b) Explain the difference between moral hazards and morale hazard (10 marks)

Question Four
(a) Explain certain elements of general law that form the prerequisites for an insurance contract to be legally binding (10 marks)
(b) Enumerate principles which govern the insurance contract and which must be observed by the parties to the contract (20 marks)






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