Risk Can Be Handled in Multiple Ways, When Risk Is

question 16

Multiple Choice

Risk can be handled in multiple ways, when risk is accepted and minimized by re-insurance it is called

• A) Risk avoidance
• B) Risk transfer
• C) Risk retention
• D) Risk forecasting

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Definitions:

Bottleneck

A machine or some other part of a process that limits the total output of the entire system.

Outside Supplier

A third-party company or entity that provides goods or services to another company, often used in the context of manufacturing and supply chains.

Opportunity Cost

The cost associated with not choosing the next best alternative when making a decision, representing the benefits one could have received by taking an alternative action.

Alternative Use

The value or potential benefit that is foregone as a result of using an asset or resource in a particular way instead of another possible way.