BUISENESS MANAGEMENT
RISK MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Eliminating risk through beta testing.
|
|
|
Policies and procedures for a response system.
|
|
|
Accepting a lower profit if some activities overrun their budget.
|
|
|
Payment of a risk premium to the party taking on the risk.
|
Detailed explanation-1: -Risk transfer nearly always involves payment of a risk premium to the party taking on the risk. It includes the use of insurance, performance bonds, warranties, and guarantees. Contracts may be used to transfer liability for specified risks to another party.
Detailed explanation-2: -What Is Risk Transfer? 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-3: -Transfer. Transfer involves shifting ownership of a threat to a third party to manage the risk and to bear the impact if the threat occurs. Risk transfer often involves payment of a risk premium to the party taking on the threat.
Detailed explanation-4: -The most common example of risk transfer is insurance. When an individual or entity purchases insurance, they are insuring against financial risks.
Detailed explanation-5: -The most popular form of risk transfer is insurance. Insurance companies are third parties that get paid to take on the negative impacts of risks in unforeseen situations. Another example of risk transfer is when an apartment complex hires a security company to ensure the safety of the residents.