Question 1
(a) Explain the following concepts as used in Risk Management.
(i) Uncertainty
(ii) Frequency and severity
(iii) Peril and Hazard
(iv) Utility (15 marks)

(b) Explain the risks that an entrepreneur may experience during the start-up and decline stage of enterprise development and how to mitigate them. (15 marks)

(c) According to Professors Mehr and Hedgers. Explain the pre-loss objectives of risk management. (10 marks)

Question 2
Risk management is a process. Discuss this statement by using examples. (20 marks)

Question 3
(a) With the use of various examples, explain how you would use tools of risk management. (10 marks)

(b) Highlight the strategies that can be used by MFi’S to reduce the risk of Misappropriation in loan disbursement. (10 marks)

Question 4
(a) Explain the need for micro-insurance in businesses. (10 marks)

(b) An Entrepreneur taking an insurance policy most understand the insurance contracts before committing himself, advice him. (10 marks)

Question 5
(a) Explain the various concepts as used in insurance.
(i) Term Insurance
(ii) Endowment
(iii) Accident insurance
(iv) Consequential loss
(v) Liability insurance. (10 marks)

(b) When analyzing client worthiness, microfinance institutions typically use the five Cs. Analyze this statement. (10 marks)