Paula, an accountant at Kagan Industries, is considering buying a commercial building on the waterfront that will directly support the company's growth by appealing to its target clientele. Buildings on the waterfront are prone to flooding after storms which cannot be fully prevented. This is a risk Paula identifies and provides the following risk responses to management: 1. Purchase flood insurance for the building 2. Purchase another building that is not on the waterfront 3. Purchase building and supplies to protect against flooding 4. Purchase building and implement evacuation procedures Which of the above risk responses is the best option for Kagan Industries to mitigate risk?