- The Happybus Company is a school bus company. It provides transportation to private schools in the city of Riyadh. The company has 70 buses that are garaged in four different regions and it provides school bus services to over 30 public schools. The firm faces competition from two larger bus companies that operate in the same regions. Public school boards give contracts to the lowest bidder, but the level of service and overall performance is also considered.
- Briefly describe the steps in the risk management process that should be followed by the risk manager of Happybus.
- Identify the major loss exposures faced by Happybus.
- 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.
- Describe several sources of funds for paying losses if retention is used in the risk management program.
- Identify other departments in Happybus that would also be involved in the risk management program.
