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      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.

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