ECONOMICS
INSURANCE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Risk reduction is:
|
|
Transferring the risk to another
|
|
|
Minimizing the chance of loss
|
|
|
Not being involved in the activity that gives rise to that chance of loss
|
|
|
Assuming the responsibility
|
Explanation:
Detailed explanation-1: -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-2: -Definition: Mitigation means reducing risk of loss from the occurrence of any undesirable event.
Detailed explanation-3: -Risk reduction is defined as “significantly altering a major risk factor(s) for a disease or health-related condition.”
Detailed explanation-4: -Disaster Risk Reduction (DRR) aims to prevent new and reduce existing disaster risks and to contribute to strengthening resilience.
There is 1 question to complete.