Separation-duplication-diversification of exposure units

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Reference no: EM133033187

A school bus operator in rural British Columbia (BC) operates a 100-bus fleet that are all stored in a central garage. The operator is having difficulty finding experienced operators, extreme weather patterns and road construction have made driving conditions more challenging, maintenance costs have been increasing, COVID-19 has discouraged drivers from staying as well as attracting new drivers and the current BC / Federal government's carbon tax is having a significant impact on fuel prices. Despite this, profit margins are being squeezed as school boards seek to limit any increases in rates.

For each of the following risk management techniques, (1) define the technique, (2) explain why that technique could or could not be used by the school bus operator to overcome this exposure and (3) provide a unique example for each:

a) Separation/duplication/diversification of exposure units

b) Exposure avoidance

c) Loss reduction

d) Loss prevention

Reference no: EM133033187

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