What Should You Do If the Severity of a Risk

question 38

Multiple Choice

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

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

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Definitions:

Power Holder

An individual or entity that possesses the authority or influence to make decisions, direct others, and enforce rules within a given context.

Influence in Motion

The dynamic process through which individuals or groups exert power to sway or direct the behavior or beliefs of others.

Forecasting Uncertainties

The acknowledgment and analysis of the unpredictability inherent in attempting to predict future events, particularly in complex systems.

Contingencies of Power

The specific conditions or situations that influence the extent to which individuals or groups can use power effectively in an organization.