Risk Management 2

RMI 2101 Summer 2018

Homework Assignment 3 20 Points

Due Dates

Hard Copy – Thursday, May 24, 2018 AT THE BEGINNING OF CLASS

Electronic Copy - Turnitin, no later than 10:10AM (5:30 PM) for the Day (Evening) Class on Friday, May 25, 2018

Be careful to follow the Guidelines for Homework Document on Canvas/Course Documents. The articles for each question can be found on Canvas. Hint: Read the questions carefully and be sure that what you write answers the questions. Many times students give correct information in an answer but that information is not the answer to the question.

1. Refer to the article in Topic 3 / Core ‘Increasing Cargo Theft Risk Recorded in Rio de

Janeiro, Brazil’. Identify and briefly discuss two TRM loss exposures illustrated in this article. In each case, you should give the example AND briefly explain why your answer is an example of the loss exposure in question. (6 points)

2. Refer to the same article ‘Increasing Cargo Theft Risk Recorded in Rio de Janeiro, Brazil’. a. From an ERM perspective, identify and briefly discuss two types of ERM risks.

(6 points)

b. For each risk you identify, indicate if it is a pure or speculative risk. Justify your answer in both cases. (4 points)

c. For each risk you identify, indicate if this risk is diversifiable or non- diversifiable. Justify your answer in both cases. (4 points)