$3.$ Avoidance is a risk$-$control technique that can be used effectively in a risk management program.

a$.$ What is the major advantage of using the technique of avoidance in a risk management program?

b$.$ Is it possible or practical for a firm to avoid all potential losses? Explain your answer.

$4.$ A risk management program must be implemented and periodically monitored to be effective. This step requires the preparation of a risk management policy statement. The cooperation of other departments is also necessary

a$.$ What benefits can the firm expect to receive from a well$-$prepared risk management policy statement?

b$.$ Identify several departments within a firm that are especially important in a risk management program.

$5.$ Chris and Karen are married and own a three$-$bedroom home in a large midwestern city. Their son, Christian, attends college away from home and lives in a fraternity house. Their daughter, Kelly, is a senior in high school. Chris is an accountant who works for a local accounting firm. Karen is a marketing analyst and is often away from home several days at a time. Kelly earns extra cash by babysitting on a regular basis. The family$$s home contains household furniture, personal property, a computer that Chris uses to prepare business tax returns on weekends, and a laptop computer that Karen uses while traveling. The Swifts also own three cars. Christian drives a $2007$ Ford; Chris drives a $2012$ Pontiac for both business and personal use; and Karen drives a $2014$ Toyota and a rental car when she is traveling. Although the Swifts have owned their home for several years, they are considering moving because of the recent increase in violent crime in their neighborhood.

a$.$ Describe briefly the steps in the personal risk management process.

b$.$ Identify the major pure risks or pure loss exposures to which Chris and Karen are exposed with respect to each of the following:

$1.$ Personal loss exposures $2.$ Property loss exposures $3.$ Liability loss exposures

c$.$ With respect to each of the loss exposures mentioned above, identify an appropriate personal risk management technique that could be used to treat the exposure.