the risk manager. Kruger faces the risk of fire which would oompletelyr destroy their building. The probability of a fire is known to be 3%. Kruger has a marginat tax rate of 40%. Kruger is considering the following risk management options to address the risk of fire to their building: 1. Retention 2. Full insurance fer a premium of $12.53!:- 3. Safety Program + Retention 4. Safety Program + Full Insuranee [premium falls to sasoo] The oost of the Safety Program is $2.0m. It has the impaot of lowering the probability of a fire from 3% to 2%. However, if a fire does ooour it is still a total loss