processing during severe winter months and, therefore, may lose its production facilities.Such a fuel shortage may arise in some future years because of either the excessive cost or the total unavailability of fuel oil.

The Risk Manager for the mill has been asked to offer their recommendations for a five-year plan for the plant to overcome this exposure to loss of revenues.They believe that this loss exposure is one to which at least some risk management techniques can be properly applied.For each of the following risk management techniques,explainwhy each technique could or could not be used by the mill to overcome this exposure to loss of revenues and provide anexample.

a.Avoid the risk:

b.Modify the likelihood and/or impact of the risk

c.Transfer the risk

d.Retain the risk

e.Exploit the risk