National College of Business Administration & Economics

(NCBA&E)
School of Business Administration (SBA)

Name: _______________________________________Reg.

No.:__________________________________

Examination: Mid Term Marks: 25 %

Course Title: Risk Management Program: BBA
Semester: Spring - 2020 Date: March 24, 2020
Instructor Name: Nasir Muhammad Iqbal Time: Online (6:00 PM to
7:50 PM)

Q # 01: Marks: 10
RB Ltd. Is Pakistan base manufacturing unit. RB ltd. has grown rapidly over the last five years and now
has 20 units located across the country. RB Ltd. Facing so many risk during performing its day to day
operations. The board of RB Ltd. decide to appoint a risk manager to control different risk exposures
which they are facing during their operation.

The role of risk manager will include the following responsibilities.

 Developing integrated approach to risk management

 Establish appropriate relationship with other management and business function
 Create as register of risk, their potential impact and how they will be managed.

You are a candidate for the role of risk manager and you have been invited to attend an interview for
which you are preparing.

Question

1- Explain briefly 7 seven significant method for the identification of risk

2- Analyze how you would address source of risk generation and risk treatment
3- Make recommendations to management for risk treatment implementation keep in mind
likelihood and financial impact of each risk.

Q # 02: Marks: 07
Umer & Co. is the one of the largest traveler agency in Pakistan and also provide fruitful information
to their client regarding trips and provide travel insurance for the same. The management of the
company decided to open a new segment in which they provide risk guidelines to their clients during
selection of destination for their trips.

You are the manager of the particular segment and how you would prepare yourself for the
following?

Question

1- What types of features you will used to provide guidelines regarding risk perception.
2- How you would deal with moral hazards and legal hazards?
3- How you would provide information regarding identification of perils.

Q # 03: Marks: 08

XYZ Company is one the largest telecom company operates in Pakistan. During last financial year the
risk register show following facts and figures;

Risk Impact No. Of occurrence last five years

Earthquake 400 Million 3

Theft 20 Million 20

Fire 100 Million 6

Terrorism 100 Million 3

MBD 5 Million 20

Flood 200 Million 5

You are the risk manager of the XYZ Company and management assigned you a task to treat risk
according to their level of priority.

Question

1- Prepare priority table for the next year

2- How would you treat risk considering risk position in priority table
3- Considering insurance cost Rs. 700 million for all above risk please suggest either you transfer
risk or retain keep in mind cost benefit analysis.