Amy installs an alarm system and smoke detectors to keep her stored furniture safe. This action reflects which risk management strategy?

The correct answer is risk reduction, which is the strategy that focuses on minimizing the likelihood or impact of potential losses. By installing an alarm system and smoke detectors, Amy is taking proactive measures to decrease the risk of damage or loss to her stored furniture. This is a direct application of risk reduction, as these devices can deter theft and alert her to fire hazards, effectively lowering her vulnerability to such risks.

In the context of risk management strategies, risk avoidance would involve taking steps to completely eliminate the risk, which is not the case here, as she is not avoiding the hazard but rather preparing for it. Risk transference would mean that she shifts the risk to another party, such as through insurance, which is not what is happening in this scenario. Lastly, risk retention involves accepting the potential risk and its consequences, rather than taking measures to reduce or prevent it, which Amy is actively doing by implementing safety measures. Thus, the action of installing these protective systems clearly aligns with the strategy of risk reduction.