After identifying and analyzing loss exposures and evaluating and selecting the appropriate risk management techniques, the next step in the risk management process is to

After identifying and analyzing loss exposures and evaluating and selecting the appropriate risk management techniques, the next step in the risk management process is to

• A. Monitor the results.
• B. Revise the risk management program.
• C. Implement the selected techniques.
• D. Decide on risk financing techniques.

Answer: (C)

Putting the chosen risk management techniques into action is the next step. Once loss exposures are identified, analyzed, and the techniques are evaluated and selected, you must implement them to actually reduce or control risk. Implementation involves putting in place the risk controls, arranging insurance or other transfers, establishing retention funds if needed, and coordinating with departments, timelines, budgets, and training so the plan operates in practice. Only after they’re in place can you monitor results and decide whether revisions are needed.

Putting the chosen risk management techniques into action is the next step. Once loss exposures are identified, analyzed, and the techniques are evaluated and selected, you must implement them to actually reduce or control risk. Implementation involves putting in place the risk controls, arranging insurance or other transfers, establishing retention funds if needed, and coordinating with departments, timelines, budgets, and training so the plan operates in practice. Only after they’re in place can you monitor results and decide whether revisions are needed.