Parker Department Stores has been hurt in recent months by a large increase in shoplifting losses.Parker's risk manager concluded that while the frequency of shoplifting losses was high,the severity is still relatively low.What is (are)the appropriate risk management technique(s)to apply to this problem?
A)retention
B)loss control and retention
C)transfer through insurance
D)avoidance

Question

Quizplus · Accepted Answer

Loss control techniques, such as increasing security measures and employee training, can be implemented to reduce the frequency of shoplifting losses. However, since the severity of losses is still relatively low, some level of retention may be appropriate to handle any remaining losses. Transferring the risk through insurance or avoidance may not be the most effective options in this case.

Parker Department Stores Has Been Hurt in Recent Months by a Large