What Should You Do If the Severity of Risk Is

question 91

Multiple Choice

What should you do if the severity of risk is low and the frequency of the risk event occurring is high?

• A) Purchase insurance.
• B) Accept the risk.
• C) Avoid the risk.
• D) Manage the risk.

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Definitions:

Service Failures

Instances when customer expectations are not met by service delivery, often leading to dissatisfaction.

Controllable Factor

An element or variable in a business or process that can be modified or adjusted according to the needs of the manager or operator.

Experience Economy

An economic concept where businesses create memorable events for their customers, and the memory itself becomes the product.

Service Blueprint

A detailed diagram that visualizes the service process, points of customer contact, and the front and back-office activities that a service entails.