1. Refer to the article in Topic 1[Optional Readings] “N.J. Boardwalk Fire Blamed on Old Wiring Damaged by Hurricane Sandy”. a. Identify and briefly discuss one major type of pure risk illustrated in this article. As you might recall from our discussion in class, there are three types of pure risk. (2 points) b. Considering your answer to part (a) above, what is the peril? Briefly explain why it is the peril to the risk you illustrated in part (a). (2 points) c. Identify one example of a hazard illustrated in the article. What type of hazard is being illustrated by your example and why? Be sure and explain your answer. (2 points) d. Explain why your answer is an example of a hazard in general. (2 points) For example, if you think there is a hazard in the article that is an example of a physical hazard, you should first explain why that hazard is an example of a physical hazard in particular and then explain why it would be an example of a hazard in general. 2. Refer to the Case Studies article in Cyber Risk/Target Breach “Target Still Doesn't Know the Full Cost of Its Breach”. Recall our discussion in class concerning the cost or burden of risk. Also read about this concept in Chapter 1 of your text under the heading ‘Financial Consequences of Risk’ on pages 1.12 – 1.14. You will need to see how our discussion is related to the reading in the text in order to answer this question properly. Identify and briefly discuss two examples of cost of risk illustrated in this article. Briefly explain why each example you chose from the article represents a cost of risk. (4 points)

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