Angela works in a biomedical research lab where she has been assigned to discover possible antidotes to the anthrax virus. While the discovery…

Risk reduction, also known as risk control, involves taking active steps to lower the probability or severity of a potential loss. By wearing protective gear, Angela is not eliminating the risk of exposure to the anthrax virus, but she is implementing a control measure to significantly minimize the likelihood of infection. She is still engaging in the high-risk activity (working with the virus) but is managing the danger through precautionary actions.

A. Risk transfer: This strategy involves shifting the financial consequences of a risk to a third party, such as an insurance company. Angela's action does not transfer the risk.
B. Risk retention: This means accepting the potential consequences of the risk. Angela is actively trying to prevent the risk from materializing, not simply accepting it.
C. Risk avoidance: This would mean completely avoiding the activity that creates the risk. In this case, Angela would have to refuse the research assignment.

1. IFSE Institute, Life License Qualification Program (LLQP) - Life Insurance Module. (Toronto, ON: IFSE Institute). Chapter 3: Risk Management, Section: "Methods of Handling Risk". This section details that risk reduction (or control) consists of actions that lower the frequency or severity of losses, such as installing safety devices or, in this context, wearing personal protective equipment (PPE).

2. Vaughan, E. J., & Vaughan, T. (2014). Fundamentals of Risk and Insurance (11th ed.). Wiley. Chapter 1: The Problem of Risk, Section: "Methods of Handling Risk". The text defines risk reduction as efforts to reduce the probability and/or severity of loss, distinguishing it from risk avoidance, which seeks to eliminate the risk entirely.