Mr. Green Tea utilizes its own delivery trucks to deliver it…
Mr. Green Tea utilizes its own delivery trucks to deliver its ice cream to customers. Mr. Green Tea owns five delivery trucks, and has five employees that drive these trucks to deliver ice cream product to customers. Since these trucks are on the road nearly every day completing deliveries, Rich is worried about the possibility of them being involved in an accident: The most likely outcome of a small “fender bender” type accident ($5,000 or less) is within Mr. Green Tea’s “risk tolerance” = and they could afford to retain these losses. However, although it is not very likely (very low frequency); a major accident that results in very significant (high severity) property damage and/or bodily injury to another (third-party) driver, or maybe even the death of another (third-party) driver would be far above or outside of Mr. Green Tea’s risk tolerance level. Based on the Selection Matrix: given the characteristics of the risk mentioned above, which risk treatment option would be the best for this risk?