What step of the risk management process follows reviewing techniques for handling loss exposures?

What step of the risk management process follows reviewing techniques for handling loss exposures?

• A. Identify exposure
• B. Select specific techniques to use
• C. Implement loss-control measures
• D. Review results

Answer: (B)

Selecting the specific techniques to use comes after you’ve reviewed the various loss-handling options. After you examine what techniques are available to address each exposure, the next step is to decide which particular approaches to apply. This decision-making phase is where you weigh feasibility, cost, effectiveness, and how well a technique fits the organization’s risk tolerance before you commit to action. Once the techniques are chosen, you then implement the loss-control measures and later monitor results to assess their impact.

Selecting the specific techniques to use comes after you’ve reviewed the various loss-handling options. After you examine what techniques are available to address each exposure, the next step is to decide which particular approaches to apply. This decision-making phase is where you weigh feasibility, cost, effectiveness, and how well a technique fits the organization’s risk tolerance before you commit to action. Once the techniques are chosen, you then implement the loss-control measures and later monitor results to assess their impact.