Jeremy, age 45, is the general manager of five fast-food restaurants. Each restaurant has a delivery service for customers who call in orders. Employees drive company cars to deliver the food. Employee turnover is high, and employee applications are not carefully verified. One restaurant has been cited by the city for unsanitary conditions and excessive smoke and odors in the kitchen area because of poor ventilation, which caused one employee to seek medical assistance for a lung condition. Another restaurant has been robbed several times during the past five years. The company has also been fined by the federal government for employing undocumented workers. The company’s accountant recommends that the firm establish a risk-management program to deal with these problems. Answer the following questions based on the preceding information.

a. Explain the meaning of risk management.

b. In the case above, identify several major loss exposures that could result in occupational injury or disease to the employees.

c. For each of the loss exposures in

(b) above, describe a risk-control technique that could be used to treat the exposure.

d. Describe several sources for paying losses if partial retention is used in the risk-management program.

e. Explain the advantages of partial retention to the company.