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

question 64

Multiple Choice

Which risk management alternative is feasible when the likelihood of an event that could cause a financial loss is very 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:

Statistical Process Control

A system in which management collects and analyzes information about the production process to pinpoint quality problems in the production system.