When Faced with a Risk of Loss That Is Low

question 48

Multiple Choice

When faced with a risk of loss that is low frequency-high severity in nature,a prudent risk manager would choose which of the following methods for handling the loss exposure?

• A)Assumption
• B)Avoidance
• C)Transfer
• D)Mediate

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Definitions:

American Expeditionary Forces

The U.S. military forces sent to Europe during World War I (1917-1918) under the command of General John J. Pershing to fight alongside the Allies against the Central Powers.

John J. Pershing

A senior United States Army officer who commanded the American Expeditionary Forces on the Western Front in World War I.

African Americans

Refers to citizens or residents of the United States who have ancestry from any of the black racial groups of Africa.

Menial Labor

Work that requires minimal skill and is often characterized by low pay and status.