FAME equipment manufactures and sells scaffolds (atew) and ladders (sw) that are used by construction firms. The products are sold directly to Hardware shops in
Bahrain. 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 exposure.
Describe the steps in the risk management process.
For each of the following risk management technique, describe a specific action using that
technique that may be helpful in dealing with the company's products liability exposure:
Avoidance
Loss prevention
Loss reduction
Noninsurance transfer​