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5. Leon is the risk manager for ABC, Inc. He has evaluated the following risks in terms of frequency and severity and asks your opinion

5. Leon is the risk manager for ABC, Inc. He has evaluated the following risks in terms of frequency and severity and asks your opinion as tho which risk management tool(s) to use and why:

probability/frequency severity per occurrence
fire destroys factor .0001 $10,000,000
loss of property through employee-theft .1 $1,000
on the job employee disability .01 $1,500,000
loss due to misplaced inventory (computer) .1 $2,000
loss due to failure to reduce energy bill (lights off, air conditioner off on weekends) .02 $400
air conditioning unit failure (compressor) .01 $2,000

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