New Click here to Enroll for SIDBI MSME Expert Classes by Experts

    Register

    Question

    When should a risk be

    avoided?
    A when the risk event has a low probability of occurrence and low impact Correct Answer Incorrect Answer
    B when the risk event is unacceptable-generally one with a very high probability of occurrence and high impact Correct Answer Incorrect Answer
    C when it can be transferred by purchasing insurance Correct Answer Incorrect Answer
    D A risk event can never be avoided Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    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.

    Practice Next

    Relevant for Exams: