NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
APRIL/MAY 2019 EXAMINATION

COURSE CODE: BFN421                                                              

CREDIT UNIT: 2

COURSE TITLE: RISK MANAGEMENT AND INSURANCE

TIME ALLOWED:   2HRS

INSTRUCTIONS:    

1. Attempt Question One (1) and any other two (2) questions

2. Question 1 carries 30 marks, while the other questions carry 20 marks each

1a. Discuss the nature of Internal and External risk that could exist in contemporary business environment. (12 marks)

b. Explain any six (6) factors that militate against personal risk management compared with the management of corporate risk.     (18 marks)

2. Explain five (5) advantages and five (5) disadvantages inherent in self-insurance. (20 marks)

3. Discuss six (6) ways a company can fund its risk exposures and still post optimal results.

20. marks)

4. Explain any eight (8) uncertainties in the environment of business entities that make their operations generally risky. (20 marks)

5a. Explain any four (4) inside stakeholders of a business organization and show how they     can be affected by risks in operations.   (12 marks)

5b. Discuss briefly any four (4) of the following terms:

1. Risk seeker
2. Risk neutral
3. Risk averter
4. Risk measurement
5. Risk treatment     (2marks each = 8 marks)