Problem
A large corporation which manufactures lawn mowers, air conditioners, heaters and snow blowers have several stores and warehouses across Canada and the US. They also own trucks for product distribution, and two small planes for carrying product parts to northern Canada.
The Corp. hires a new Risk Manager who wants to review the company's approach to handling their exposures to perils. He/she thinks about:
• An example of a pure risk that the Corp. would face.
• Examples - one of Personal risk, Property risk (direct and indirect) and Liability.
• An example in each of the classes of insurance involved.
• An example of a weather-related peril and hazard in BC, Manitoba and the Eastern provinces.
• Is the company susceptible to any crime and liability perils. If so, what are examples of each.
• If a tornado destroyed the Corp. property in Western Canada, what would be a Pre-loss objective and a Post-loss objective to consider.
• Identifying and analyzing one exposure.
• Formulating options for dealing with that one exposure, with an example of applying a loss control technique and a loss financing technique with consideration for retention and loss transfer.
Briefly explain what answers would the Risk Manager comes up with to address his/her thoughts.