Scaffold Equipment manufactures and sells scaffolds and ladders that are used by construction firms. The products are sold directly to independent retailers in the United States. 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 exposures.

Describe the steps in the risk management process.

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

Avoidance

Loss prevention

Loss reduction

Noninsurance transfers