BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If a business transfers a risk, that means no none assumes the risk; it is eliminated.
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True
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False
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Risk transfer is a risk management and control strategy that involves the contractual shifting of a pure risk from one party to another. One example is the purchase of an insurance policy, by which a specified risk of loss is passed from the policyholder to the insurer.
Detailed explanation-2: -Which statement is correct with respect to transferring risk?-Transfer of risk increases total cost of the risk event occurring.
Detailed explanation-3: -What is the simplest way to eliminate risk? Risk avoidance.
Detailed explanation-4: -Insurance. The transfer of Pure risk from one party to another for a price through a legal contract that spells out the terms, perils covered, and property/perils excluded.
There is 1 question to complete.