Which of the following is an external source of loss data?

The selection of third party administrator loss runs as the correct answer highlights an important aspect of risk management and data sourcing. Third party administrator loss runs are reports generated by external organizations that handle claims on behalf of an insurance company or self-insured entity. These reports provide detailed information about losses, including the types, severities, and frequencies of incidents, which can be crucial for analyzing trends and managing future risks.

Using external sources of loss data, such as third party administrator loss runs, is valuable because it offers a more objective view that may include information not available internally. External sources can reveal broader industry trends and loss experience, which can enhance a company's understanding of risk exposure and inform better decision-making regarding risk management strategies.

In contrast, first aid logs, litigation records, and incident reports are typically internal sources of data. These are generated within the organization and may have limitations regarding the completeness or consistency of the information they provide. Leveraging external data enhances the risk management process by diversifying the sources of information considered.