You are the risk manager for a company that has liability risks related to operations and/or facilities. For example, customers may be injured at the premises; but these kinds of incidents seldom happen. However, when they do occur, the resulting financial loss from a liability lawsuit could be significant. What strategy would you recommend, using the risk management decision-making matrix, to deal with this risk?

• A. The company should avoid this loss.
• B. The company should retain the financial responsibility to fund such losses internally.
• C. The company should implement loss reduction and purchase insurance to cover this loss.
• D. The company should implement a loss prevention plan.