Carbon Fibre Structures Inc. is an aerospace company that is developing a formalized risk management process. The greatest risks this company faces are in yield rates from buyer inspections because the batches of components are very expensive, and therefore the quality failures on batch inspections can have a huge financial impact. As a result, the company has decided to produce their products in smaller batches, to undertake more internal procedural inspections (to reduce the chances of mistakes), and to reduce the costs associated with any single batch failure. What approach to risk mitigation has the company taken?

a) Risk retention

b) Risk transfer

c) Risk reduction

d) Risk avoidance