NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
JULY 2018 EXAMINATION

COURSE CODE:      BFN421                                                            CREDIT UNIT:   2               

COURSE TITLE:     RISK MANAGEMENT AND INSURANCE

TIME ALLOWED:   2 HOURS     

Instructions:

1. Attempt question number one (1) and any other two (2).

The need for management of personal risk has necessitated several societal safety nets for individuals and families in many countries. Unfortunately, such societal securities seem to be lacking in Nigeria. Thereby making it imperative for individuals to order their priorities right and avoid ostentatious living.

Required:

(a.)       Enumerate the process of personal risk management?                 (12 marks)

(b)        Identify the factors that militate against personal risk management?  (13 marks)

2a.        Distinguish between risk and uncertainty in business management? (7 marks)

2b.       Itemize the nature of internal and external risk that is likely to be encountered in contemporary business environment?                  (8 marks)

3.The Nigerian business environment has been found to be bedeviled by an array of risks. Identify the causes of risk in the Nigerian business environment?         (15 marks)

4.         Justify the need for effective risk management in business management?  (15 marks)

5.         What are the ways through which a company can fund its risk exposures and at the same time obtain optimal results?                   (15 marks)