Final answer:
More information is needed to compare the risk levels of the various entities mentioned. Without comparative data, we cannot ascertain who faces the most risk. Risk mitigation strategies can decrease frequency and severity of thefts, thereby affecting expected losses.
Step-by-step explanation:
The question revolves around risk management and the expectation of the number of thefts at a gift store called 'Field of Diamonds Gifts'. The store expects 15 thefts per month with a variance of 3. To determine who faces the most risk, we need additional data about the other entities mentioned: Cherry & White Novelties and Owis Nest Souvenirs, as they are not provided with sufficient context in this information. Without comparative data on the number of thefts and variance for these entities, it is impossible to ascertain who faces the most risk.Regarding the Field of Diamonds Gifts, if specific risk mitigation strategies decrease the number of thefts (frequency), this can also reduce the severity of losses and the expected loss overall. Such strategies may include enhanced security measures, employee theft prevention training, or the installation of surveillance systems. Understanding and implementing these strategies is essential for effective risk management.In conclusion, we need more information to determine who faces more risk among the entities mentioned and how the strategies can impact specific aspects of risk like frequency and severity.