Even complicated and confusing topics will be easily developed and covered if you request our help writing an essay. Place an order today!

 

Competency

Evaluate the components of operational risk and the application of corresponding risk management plans.

Instructions

LTD Acceptance is a private property and auto insurance carrier that specializes in sports cars and motorcycles. This organization is owned by LTD Capital, a large equity group with over 15 holdings. LTD Acceptance is the parent company's single largest holding as it drives 70% of total revenue. Due to the inherent risk involved in that segment of the market, many of LTD Acceptance's competitors do not offer policies for sports cars or motorcycles. This market segment is underserved which is why the organization has 20,000 active policies for a sports car or a motorcycle.

LTD is headquartered in Houston, TX. LTD does not sell insurance directly to the public. Instead, it uses third-party agents to sell its policies. LTD handles all customer service needs including claims intake, policy services, and general questions. The company operates in four states: California, Texas, Louisiana, and Florida. Currently, LTD does not have an active system in place to ensure that its agents are in fact using LTD guidelines to screen potential policyholders. However, no evidence of negligence has emerged so far as the organization has yet to have a year in which it was not profitable. LTD has also had the good fortune of not suffering losses because of natural disasters or catastrophic events.

Organizations in every sector experience breakdowns or failures that compromise the efficiency and efficacy of their operations. This concept is defined as an operational failure. Operational failures have a direct and adverse impact on profitability. As such, the shareholders want assurance that the risk management team is actively working on mitigating the occurrence of these failures. As the newly hired senior risk analyst, you are responsible for outlining a plan to do just that.
For this deliverable, provide a report to your supervisor which provides a framework for managing operational risk exposures. Your report should include the following:

  • Explain why the operational losses cannot be broadly managed. Why do they have to be categorized?
  • For each operational risk exposure listed below, provide at least two examples of potential losses from the exposure and reasons why you need to manage it.     
    • Internal fraud
    • External fraud
    • Employment practices and workplace safety
    • Clients, products, and business practices
    • Damage to physical assets
    • Business disruption and system failures

Your conclusion should align the effective management of operational risk exposures with organizational effectiveness.

testimonials icon
Using Social Blade and other online resources, compare and contrast two influential influencers. You choose two platforms. Once yo...
testimonials icon
  Topic 2: The Future of NursingIn response to the IOM report explain how nursing theory can support the recommendations for the fu...
testimonials icon
ACC 410 WEEK 5 ASSIGNMENT AUDIT REPORT MODIFICATIONS PAPER...
testimonials icon
You have been selected to be the project manager (for a project of your choice). The project you choose here will be used again in Assignment 4 (We...
testimonials icon
Training and DevelopmentExtending Learning with the 6D’sHow can the 6Ds you have learned about in the book help evaluate a learning orga...
testimonials icon
due by 9 April 2014...
testimonials icon
TOTAL POINTS POSSIBLE 100 Points REQUIREMENTS  1. Identify a health problem o...
testimonials icon
NO PLAGIARISM DUE SUNDAY JUNE 16, 2019.  ATTACHED IS CHAPTERS AND ARTICLES TO ASSIST WITH ASSIGNMENT AND ANNOTATED BIBLIOGRAPHY...
testimonials icon
Discussion 3  A simulated disaster and comprehensive recovery test may involve many of an organization’s key personnel for several days: is...
testimonials icon
Week 3 Assignment 2: Text Messages Due Week 3 and worth 40 pointsYour internet was down last night and you w...

Other samples, services and questions:

Calculate Price

When you use PaperHelp, you save one valuable — TIME

You can spend it for more important things than paper writing.

Approx. price
$65
Order a paper. Study better. Sleep tight. Calculate Price!
Created with Sketch.
Calculate Price
Approx. price
$65