Chris and Karen are married and own a three-bedroom home in a large midwestern city. Their son, Christian, attends college away from home and lives in a fraternity house. Their daughter, Kelly, is a senior in high school. Chris is an accountant who works for a local accounting firm. Karen is a marketing analyst and is often away from home several days at a time. Kelly earns extra cash by babysitting on a regular basis.

The familys home contains household furniture, personal property, a computer that Chris uses to prepare business tax returns on weekends, and a laptop computer that Karen uses while traveling. The family owns three cars. Christian drives a 2010 Ford; Chris drives a 2015 Honda for both business and personal use; and Karen drives a 2017 Toyota and a rental car when she is traveling. Although the family has owned their home for several years, they are considering moving because of the recent increase in violent crime in their neighborhood.

1. Describe briefly the steps in the personal risk management process.

2. Identify the major pure risks or pure loss exposures to which Chris and Karen are exposed with respect to each of the following:

   1. Personal loss exposures

   2. Property loss exposures

   3. Liability loss exposures

3. With respect to each of the aforementioned loss exposures, identify an appropriate personal risk management technique that could be used to treat the exposure.