Homework - 1. Two direct costs that BP faces after the oil...

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1. Two direct costs that BP faces after the oil spill are the costs to repair the ruptured well and wage costs. BP had to hire thousands of people to assess the situation and help clean the beaches of Louisiana causing an increase in wage expenses as well as the numerous amount of money BP had to pay to actually get the well fixed including materials. Two indirect costs that BP faces are its reputation and the cost to implement a new risk management program to prevent like incidents from occurring. BP’s reputation was damaged because of the response time and the amount of oil that was released into the water. Society may view them different for not responding quicker and not having a plan already set in motion for situations like the one that occurred. BP also has to also spend millions of dollars on implementing a new plan that will prevent similar incidents and carry the burden of residual uncertainty. 2. Three areas that ATIWIS identified as sources of potential loss were personal property exposures, swimming pool/Jacuzzi exposures, and nursery/daycare exposures. Damage of personal property can lead to a claim for insurance
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This note was uploaded on 04/21/2011 for the course RISK MANAG 2101 taught by Professor Drennan during the Spring '07 term at Temple.

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Homework - 1. Two direct costs that BP faces after the oil...

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