3. Scaffold equipment manufactures and sells scaffolds and ladders that are used by construction firms. The products are sold directly to the independent retails in the country. The company's risk manager knows that the company could be sued if a scaffold or ladder is defective, and someone is injured. Because the cost of products liability insurance has increased, the risk manager is considering other techniques to treat the company's loss exposure.

i.Describe the steps in the risk management process.

ii.For each of the following risk management techniques, describe a specific action using that technique that may helpful in dealing with the company's products liability exposure.

a)Avoidance

b)Loss prevention

c)Loss reduction

d)Noninsurance transfers