1. Enterprise risk management programs differ from tra-ditional risk management programs. What additionalexpertise, aside from knowledge of hazard risks, musta Chief Risk Officer possess?2. Why might members of an organization resist theimplementation of an enterprise risk management pro-gram? How can this resistance be overcome?3. Why might the risk treatment method selected under atraditional risk management program differ under anenterprise risk management program?4. Explain how the following terms are used in loss controlinvestment decisions.a. Capital budgetingb. Time value of moneyc. Internal rate of return 5. A risk manager self-insured a property risk for oneyear. The following year, even though no lossesoccurred, the risk manager purchased property insur-ance to address the risk. What is the best explanationfor the change in how the risk was handled, eventhough no losses had occurred?