Question

The eleven southern New Jersey stores of Elder Dry Goods have been hurt in recent months by a large increase in shoplifting losses. The company's risk manager concluded that while the frequency of shoplifting losses has been high, the severity remains relatively low.
Required:
Which risk management techniques would be most appropriate for this problem?

Answer 1

Answer: loss control and retention

Explanation:

The options to the question are:

A. retention

B) loss control and retention

C) transfer through insurance

D) avoidance

Based on the information given in the question, management techniques would be most appropriate for this problem is the loss control and retention.

Loss control also referred to as risk reduction can be done through the prevention of loss by reducing the probability of risk, thereby minimizing the loss. This will be vital in this scenario as the shoplifting will reduce.