The City Bus Corporation Case Study
The City Bus Corporation provides school bus transportation to public schools in Lancaster County the city owns fifty 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 and private schools generally award contracts to the lowest bidder, but the level of service and overall performance are also considered. The risk manager should follow these steps to help reduce risk for the company. They are Identify loss exposures. By looking at where a loss can happen at around the business. By looking at different area around the business. Building and the financial statements helps the risk manager better understand what type a loss that can happen. By doing this and making a list to go through and list out all of the exposures helps risk manager better understand the company risks. Identify all major and minor loss explores to a business like property, is the ground and walk ways in good order. Is the building in good repair? Does it look nice on the outside? Is it lock up at night? These are just some of the risks for buildings. What of the liability of the buses are they in good repair? Do they have good records kept on them? Are the people working on them certified or not. Are they clean? What about the drivers do they have good license? What are their driving records like. All of these fall under the legibly of the company Are we able to make money if we have a low bid? If so what will the business income come out too? How many people can we have on staff to make money? Are we cutting too many things and not having people with skill to work for us or are they going to steal instead because we are paying too low of a wage. What about the area of our garage is it in a high crime area? Are the buses safe at night or will they be vandalize by kids or gangs trying to tag them. Are they kept under cover so that if we have a hail storm will that not get damaged? Or by a tree falling on them Employee benefits do we have too much or not enough. Are we completive with other companies with what we offer of employees’ benefits? Are we making sure they are paid on time and that they money is going to the right account. Are we paying are taxes on time as well By doing all of this the risk manager helps to reduce the exposure to the company. But there is more that can be done. It is only looking to see where the risk are above now his need is to start addressing it By doing this he will need to have all the manger on board looking and helping to address an and all risk that can happen and getting feedback from the different mangers helps. Having all departs like the bus garage manager, personal manger, and accounting manager as well as the manager for the driver meet and work together is important for the City Bus Corporation to provide all best possible service at the lowest price. Also he should measure and analyze the loss exposures. It is important in order to manage them properly this step requires an estimation of the frequency and severity of loss. By know these and keeping a record helps with determining what they risk are and how much each one will cost. By electing the appropriate combination of techniques for treating the loss exposures. These techniques can be classified broadly as either risk control or risk financing. By classifying them they can be divvied up among the departments to address with a check list as to when hey will be addressed. By doing this is helps with making each department more responsible for their risk and for making sure that the risk does not have. Implementing and monitor the risk management program this step begins with a policy statement this is necessary to have an effective risk management program in place. By this statement outlines the...
References: Captive Insurance Basics . (2015). Retrieved from Captive.com The Business to Business Risk & Insurance Exchange: http://www.captive.com/resources/captive-insurance-basic-information-index
Investopedia. (2015). Retrieved from Underwriting: http://www.investopedia.com/terms/
Rejda, G. McNamara, M. (2014). Principles of Risk Management and Isnurance 12th Edition. Boston: Pearson.
Victoria, T. T. (2012). Managing the Risk to Bus Safety . Retrieved from Transport Safety Victoria : http://www.transportsafety.vic.gov.au/__data/assets/pdf_file/0004/100597/Managing-the-risks-to-bus-safety.pdf
Please join StudyMode to read the full document