ECONOMICS
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Sharing
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Reduction
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Avoidance
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Retention
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Detailed explanation-1: -This method of risk management attempts to minimize the loss, rather than completely eliminate it. While accepting the risk, it stays focused on keeping the loss contained and preventing it from spreading.
Detailed explanation-2: -Risk reduction deals with mitigating potential losses by reducing the likelihood and severity of a possible loss. For example, a risk-avoidant investor who is considering investing in oil stocks may decide to avoid taking a stake in the company because of oil’s political and credit risk.
Detailed explanation-3: -Loss control is a risk management technique that seeks to reduce the possibility that a loss will occur and reduce the severity of those that do occur. A loss control program should help policyholders reduce claims, and insurance companies reduce losses through safety and risk management information and services.
Detailed explanation-4: -Avoidance. Retention. Spreading. Loss Prevention and Reduction. Transfer (through Insurance and Contracts) 22-Jun-2022
Detailed explanation-5: -Avoid risk. Reduce or mitigate risk. Transfer risk. Accept risk. 08-Sept-2020