Arkansas Insurance Adjuster Practice Exam

Amy is practicing risk reduction by installing an alarm system and smoke detectors in her storage building. This involves taking action to minimize the likelihood and impact of potential risks. Options A and B, risk avoidance and risk transference respectively, involve avoiding or shifting the risks altogether, rather than actively lowering the risk level. Option D, risk retention, involves accepting the risk and handling any potential consequences on one's own. Therefore, option C is the most appropriate risk management strategy for Amy in this situation.