BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The process of evaluating risk and choosing how to minimize the loss.
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risk transfer
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risk
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risk management
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risk reduction
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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: -Loss Prevention and Reduction This method of risk management attempts to minimize the loss, rather than completely eliminate it.
Detailed explanation-3: -In business, risk management is defined as the process of identifying, monitoring and managing potential risks in order to minimize the negative impact they may have on an organization.
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