25 points
QUESTION 1
Johnson Auto Dealership is a small car dealership that sells used vehicles and also does auto repairs Johnson Auto Dealership currently owns 100 vehicles that are for sale. There are 50 vehicles for sale and a
service (auto repair) department located in Brown Deer, Wt and another 50 vehicles for sale and a service (auto repair) department is located in Oak Creek, W. Depending on current inventory, a car may be driven from
one location to the other location, to ensure both lots have approximately 50 vehicles for sale at any given time or due to customer interest Johnson Auto Dealership also completes auto repairs at each location
Depending on the type of repairs needed, some vehicles may stay at Johnson Auto Dealership overnight Johnson Auto Dealership's goal is to maintain high level of quality service, reduce the amount of time it takes
to repair vehicles and offer competitive pricing
Please answer the following
a Brely describe the steps in the risk management process that should be followed by Johnson Auto Dealership
b. Identify the major loss exposures faced by Johnson Auto Dealership
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 How would you monitor if the techniques identified in (c) are effective?