When Mr. Green Teа first stаrted their business = it sоld its "green teа" flavоred ice cream sоlely to 2 large Asian-cuisine restaurant chains in the northern New Jersey region. These two restaurant chains accounted for 100% of Mr. Green Tea's sales (50% and 50% respectively). As such, Mr. Green Tea did not have much leverage when it came to contract negotiations, since these two customers accounted for all of their sales. Over the years, the company has expanded their customer base. Now Mr. Green Tea has contracts with over 50 different restaurants / restaurant chains located in New Jersey and New York. Additionally, the company now sells individual cartons of its ice cream to retail / grocery store customers; and has its products for sale in over 10 different grocery store chains in the New Jersey and New York region. This change in business model is an example of which type of risk modification technique?
Mr. Green Teа is prоducing neаrly 1,000 gаllоns оf ice cream per week. Rich is highly diligent in monitoring the production process. However, based on his 15 years of experience, he knows that in any given week = one batch of 10 gallons of ice cream will be produced defective in some way (incorrect ingredients, human error, etc.) This defective 10 gallons of ice cream must be discarded (cannot be sold). Rich is confident that this risk is very likely occur, as it has occurred quite frequently over the past 15 years. Due to this, Rich purposely allocates $100 per week out of the company's financial budget to be used to purchase 10 gallons of supplemental raw materials (milk, cream, sugar, flavorings, etc.) = which is used to produce an additional 10 gallons of ice cream (to make up for the 10 gallons of defective product that inevitably will be lost.) Based on the above information, which type of risk financing technique is Rich engaging in?