Answer-When should a risk be avoided?

Risk mitigation Once the risks have been identified and assessed, the possible ways to manage the risk may fall into one of the following major actions a Avoid eliminate, withdraw from, or not become involved b Reduce optimise-mitigate c Share diversify-transfer-outsource or insure d Retain accept and contain When the risk event is unacceptable-generally one with a very high probability of occurrence and high impact, the risk mitigation strategy can be to avoid.

Question

When should a risk be

avoided?

A when the risk event has a low probability of occurrence and low impact

B when the risk event is unacceptable-generally one with a very high probability of occurrence and high impact

C when it can be transferred by purchasing insurance

D A risk event can never be avoided

E None of the above

Practice Next

Relevant for Exams:

NaBFID

When should a risk be

Solution

Relevant for Exams: