LTD Acceptance (a fictitious company) is a private auto insurance carrier specializing in sports car ...

LTD Acceptance (a fictitious company) is a private auto insurance carrier specializing in sports cars and motorcycles. LTD Capital, a large equity group with over 15 holdings, owns LTD Acceptance. LTD Acceptance is the parent company's largest holding, driving 70% of total revenue. Due to the inherent risk in that market segment, many of LTD Acceptance's competitors do not offer sports cars or motorcycle policies. This market segment is underserved, and LTD Acceptance organization currently has 20,000 active sports car and motorcycle policies. LTD is headquartered in Houston, TX. LTD does not sell insurance directly to the public. Instead, it uses third-party agents to sell its policies. LTD handles all customer service needs, including claims intake, policy services, and general questions. The company operates in four states: California, Texas, Louisiana, and Florida. LTD does not have an active system to ensure that its agents use LTD guidelines to screen potential policyholders. However, no evidence of negligence has emerged as the organization has yet to have a year in which it was not profitable. LTD has also had the good fortune of not suffering losses because of natural disasters or catastrophic events. Organizations in every sector experience breakdowns or failures that compromise the efficiency and efficacy of their operations. This concept is defined as an operational failure. Operational failures have a direct and adverse impact on profitability. As such, the shareholders want assurance that the risk management team is actively working on mitigating the occurrence of these failures. As the newly hired senior risk analyst, you are responsible for outlining a plan to do just that. For this deliverable, provide a report to your supervisor that provides a framework for managing operational risk exposures. Your report should include the following: Explain why the operational losses cannot be broadly managed and must be categorized. For each operational risk exposure listed below, please provide at least three examples of potential losses from the exposure and the justification for managing those exposures. Internal fraud External fraud Employment practices and workplace safety Clients, products, and business practices Business disruption and system failures Include a conclusion statement that discusses how effective management of operational risk exposures plays a part in organizational effectiveness. The format for your report should be in the business and professional style while maintaining APA requirements for in-text citations and reference pages.