Which One of the Following Risk Management Techniques Does a Firm

question 301

Multiple Choice

Which one of the following risk management techniques does a firm practise when it chooses self-insurance instead of submitting claims to an insurance company?

• A) Risk transfer
• B) Risk avoidance
• C) Risk retention
• D) Risk control
• E) Risk shift

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Definitions:

Committee

A permanent, formal group that performs a specific task.

Permanent

Something that is intended to exist or function for an indefinite duration without significant change.

Formal Group

An intentionally structured group created within an organization, based on specific roles, tasks, and objectives, opposite to spontaneously formed informal groups.