BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is not an example of a risk-sharing strategy?
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Outsourcing a noncore, high-risk area.
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Selling a nonstrategic business unit.
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Hedging against interest rate fluctuations.
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Buying an insurance policy to protect against adverse weather.
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Explanation:
Detailed explanation-1: -The basic methods for risk management-avoidance, retention, sharing, transferring, and loss prevention and reduction-can apply to all facets of an individual’s life and can pay off in the long run.
Detailed explanation-2: -Widely, risks can be classified into three types: Business Risk, Non-Business Risk, and Financial Risk. Business Risk: These types of risks are taken by business enterprises themselves in order to maximize shareholder value and profits.
There is 1 question to complete.