A Private Investment Firm,dealing Exclusively in Derivative Investment Products,is Concerned

A private investment firm,dealing exclusively in derivative investment products,is concerned its market activities may become regulated.Which of the following would the manager of the risk department identify as the recommended measures the institution should undertake to begin to address its concerns?

A) take action to establish an adequately funded cash reserve
B) undertake to manage legal risk with a plan to prevent loss
C) appoint a junior trader to monitor and assess possibility of loss
D) undertake and prepare a risk aversion policy manual