The actions described by coordinating insurance coverage during installation of a new alarm system illustrate which step of the risk management process?

The actions described by coordinating insurance coverage during installation of a new alarm system illustrate which step of the risk management process?

• A. Identify hazards
• B. Implementing the selected risk management technique
• C. Monitor risk
• D. Review risk financing

Answer: (B)

Implementing the selected risk management technique. Coordinating insurance coverage when installing a new alarm system is putting the chosen approach—risk financing through insurance—into action. Insurance transfers part of the financial loss risk to the insurer, so arranging and aligning that coverage as the system is installed is a concrete step to apply the chosen risk treatment. It’s not about identifying hazards, which happens earlier; nor is it about ongoing monitoring or re-evaluating financing options later. This action demonstrates putting the risk management strategy into effect.

Implementing the selected risk management technique. Coordinating insurance coverage when installing a new alarm system is putting the chosen approach—risk financing through insurance—into action. Insurance transfers part of the financial loss risk to the insurer, so arranging and aligning that coverage as the system is installed is a concrete step to apply the chosen risk treatment. It’s not about identifying hazards, which happens earlier; nor is it about ongoing monitoring or re-evaluating financing options later. This action demonstrates putting the risk management strategy into effect.