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Problem: For hifsa shaukat City Bus Corporation provides school bus transportation to public schools in Lancaster County. City Bus owns 50 buses that are garaged in three different cities within the county. The firm faces competition from two larger bus companies that operate in the same area. Public school boards generally award contracts to the lowest bidder, but the level of service and overall performance are also considered.
a. Briefly describe the steps in the risk management process that should be followed by the risk manager of City Bus.
b. Identify the major loss exposures faced by City Bus.
c. For each of the loss exposures identified in (b), identify a risk management technique or combination of techniques that could be used to handle the exposure.
d. Describe several sources of funds for paying losses if retention is used in the risk management program.
e. Identify other departments in City Bus that would also be involved in the risk management program.
Volume-based Measures Used For Applying Overhead Costs
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