You are the risk manager for a large insurance company who is having a problem with office supply inventory. The company has more than 5,000 employees and it seems that a large percentage of them are frequently taking ink pens, paper, pencils and the like home for their personal use. The estimated average loss to the company is $10 per occurrence and in a month, at least 1,500 theft incidents occur. Using the risk management decision-making matrix, what strategy would you recommend to deal with this problem

Incomplete question. The option read;

A. The company should install a security camera above the office supply cabinets.

B. The company should purchase insurance to cover this loss.

C. The company should no longer provide the employees with any office supplies.

D. The company should purchase the most inexpensive office supplies possible.

A. The company should install a security camera above the office supply cabinets.

Explanation:

Indeed, since we are told that a large percentage of the employees engage in theft, an appropriate risk management strategy would be to install a security camera above the office supply cabinets. By so doing the company can fine those caught in the act of stealing on video.

Remember, the term risk management involves identifying, assessing, and preventing threats to an organization's capital and earnings. Hence, it is wise to believe that when employees are aware that their actions are been monitored this may deter them from carrying the negative actions out.

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