Which Risk Management Alternative Is Feasible When the Likelihood of an Event

question 78

Multiple Choice

Which risk management alternative is feasible when the likelihood of an event that could cause a financial loss is low and the potential financial loss due to the event is small?

• A)Avoid risk
• B)Reduce risk
• C)Accept risk
• D)Insure against risk

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Definitions:

Raise Money

The process of acquiring funds to support a project, initiative, or organization, typically through investments, donations, or loans.

Boards

Groups of individuals elected or appointed to oversee and guide the policies, strategic direction, and financial stewardship of an organization.

Monitoring Performance

The continuous process of evaluating and assessing the performance of a program, project, or employee over time to ensure objectives are being met.

Nonprofit Boards

Governing bodies within nonprofit organizations that provide oversight, strategic direction, and ensure the organization’s resources are used efficiently towards achieving its mission.