Scaffold Equipment manufactures and sells scaffolds and ladders that are used by construction firms. The products are sold directly to independent retailers in the United States. The company's risk manager knows that the company copuld be sued if a schaffold or ladder is defective, and some is injured. Because the cost of products liability insurance has increased, the risk manager is considering other techniques to treat the company's lost exposures.

a. Describe the steps in the risk management process.

b. For each of the following risk management techniques, describe a specific action using the technique that may be helpful in dealing with the company's products liability expsoure.

1) Avoidance

2) Loss prevention

3) Loss reduction

4) Noninsurance transfers