BUISENESS MANAGEMENT
RISK MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Minimise the Risk
|
|
|
Eliminating the Risk
|
|
|
Risk Transfer
|
|
|
Risk Sharing
|
Detailed explanation-1: -Risk sharing is a risk management strategy that companies or individuals use to transfer risk to a third party. Individuals and companies take risks when involved in business and use risk sharing to cover the potential loss from an uncertain event.
Detailed explanation-2: -Risk transfer, or risk sharing, occurs when organizations shift the risk to a third party. A typical example of this occurs in the domain of financial loss. The vulnerable organization can transfer its risk of financial loss to an insurance company for a small premium.
Detailed explanation-3: -The levels are Low, Medium, High, and Extremely High. To have a low level of risk, we must have a somewhat limited probability and level of severity. Notice that a Hazard with Negligible Accident Severity is usually Low Risk, but it could become a Medium Risk if it occurs frequently.