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:

Agreement

A mutual understanding or arrangement between two or more parties that outlines the terms and conditions of a specific course of action.

Fraud

Intentional deception made for personal gain or to damage another individual.

Voidable Contract

A voidable contract is a legal agreement that may be annulled or declared invalid by one of the parties due to certain defects, while remaining valid until such action is taken.

Result

The outcome or consequence of an action, process, or situation, often measured to determine success or failure.