1 39 1. One method of risk identification the author refers to the article "Arranging Insurance for Health Clubs" is physical inspection. In the case of any club that situated in building more than 25 years ago, they inspect the building to see if the roofing, plumbing..etc are working properly. Because in an old building, the chance that these wiring...are defected is very high which increases the frequency of fire and the severity of damage it causes. 2. In the article " A batman cape won't help you fly", the method used to generate the list of warnings on the Snow Works Super Boggen is Statistical analysis of past losses (historical loss data) because the company lawyers drew up the warning based on emergency room records, consumer surveys and past legal history. 3. Property loss exposure faced by the circus is traveling. Since the Ringling circus has to travel to many place by train, the chance that terrible natural disasters like tornado, hurricane or earthquake hit the train is possible especially in Florida. Moreover, Ringling's train is the world largest private train with 53 cars long so the degree of severity when the train gets hit by disaster will higher. The frequency of losing equipments also increases since they have to assemble then disassemble everytime they come to a new place. Liability loss exposure faced by the circus is the act of touching their animals by the public. If they let the audience touch the animals the frequency that the audience will get hurt will increase, and the wound would be more severe if it's caused by a lion. Personel loss exposure faced by the circus is accident during performance of performer. For example, in the case of Saha, a boil broke off from the highwire apparatus, sending Sasha plummeting to the ground, fracturing his pelvis. The circus had lost him in six months. Net Income loss faced exposure by the circus maybe from the accident of talent performers. Every circus has its unique, key performance, if the performer of the key performance gets accident while performing , he might never recover and the key performance that helps the circus attract audience will be no longer exist. The audience will choose other shows which will lead to decrease in net income. So lost of the special performer is the primary loss which leads to secondary loss is net income 4. The two difference risk exposures faced by Taco Bell franchise owners are financial exposures and Strategic exposure. After the incident occurred, sale had dropped down 2 percent in the fourth quarter and profit fell $19 million, compared with the same period the year earlier, and 90 stores were temporarily closed. The corporate's reputation ( strategic Exposure) also went down since "the franchisees didn't trust
39 2 corporate, and the corporate didn't trust the franchisee. The reputation between franchise owner and consumers were also affected a lot because they all have a same brand name. So no matter how good franchise owners in a southern area performed their reputation were also affected by the bad incident that occurred in the north. The outbreak was occurred in the northeast but led to decline in sale of the whole franchise (19 millions). The correlation between two explosures here are income and reputation. As the incident occurred, even if only in northeast, but customers looked it as a whole because the restaurant operating under the name Taco Bell which had thoundsand of restaurants in the U.S and running the same system and process of making food. As a result, Taco bell reputation went down, customers stopped trusting, and was afraid of poison food of Taco bell, so they stopped coming which led to dramatically declined in income of franchise owners.