BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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economic conditions
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destructive weather
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consumer demand
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competitors’ actions
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Detailed explanation-1: -Which of the following is not an element of insurable risks? Loss must be predictable.
Detailed explanation-2: -Risk transfer. Typically this involves buying an insurance policy to cover the financial costs of the potential harm.
Detailed explanation-3: -The correct answer is (d) eliminating all risks. Risks cannot be completely eliminated. However, they can be mitigated. The four stages of risk management are identifying risks, assessing them, controlling them, and reviewing the policies.
Detailed explanation-4: -A speculative risk has the potential to result in a gain or a loss. It requires input from the person looking to assume the risk and is therefore entirely voluntary in nature. At the same time, the result of a speculative risk is hard to anticipate, as the exact amount of gain or loss is unknown.