Problem
As work in the risk management area for a mid-sized LTL trucking company that specializes in moving packaged food products, including products requiring refrigeration. Recently, there has been an alarming increase in freight claims against your company mostly related to product damage and product contamination.
Your boss is quite familiar with the three risk management articles we discussed in class (i.e., the cargo theft articles and the severe weather risk management article), and wants you to draw upon the approaches used and lessons learned in them to prepare a short report that addresses the first two steps of a risk management plan - (i) understanding the risks and vulnerabilities and (ii) assessing the risks. You are not expected to provide any numbers at this point in time, but rather to outline the approach you recommend taking to address the claims increase problem. The approach should, for instance, identify and categorize potential sources or causes of the problem, and explain how you would estimate the financial and other impacts of the incidents.