Which of the following statement is correct?

All the answers are incorrect.

Businesses have no incentives to reduce the frequency and severity of worker

injuries if employees are informed about the risk.

Cost of external risk reduction could be due to non$-$diversification efforts and

divesting of information at workplace.

Cost of loss financing could be due to $(1)$ retention and self$-$insurance, $(2)$ buying

insurance, $(3)$ applying hedging tools, $(4)$ arranging other risk transfers.

The total cost of risk includes the cost of raw materials.