Chapter 3- Risk Management

When a company decides to "avoid the risk" this means

• they will make sure their employees are properly trained

• they will get insurance

• they will not engage is the activity that is risky

With careful planning, it is possibly to avoid all risk.

• True

• False

Which of the following is a controllable risk?

• a sudden hailstorm

• loss from theft

• a flash flood

• lightning strikes

If you chose not to complete a risky activity, you are said to be _________ the risk.

• avoiding

• transferring

• respecting

• assuming

You decide to cancel your trip to the Gulf Coast because a hurricane is forecast to hit the area. This is an example of

• insuring risk

• transferring risk

• assuming risk

• avoiding risk

Can you transfer risk through insurance?

• Yes

• No

This refers to the strategies that minimize the risks associated with a business's operations.

• Avoiding the risk

• Ignoring the risk

• Risk Management

• Business Management

When a business continues to engage in the activity but takes steps to reduce the risk.

• Retaining the risk

• Avoiding the risk

• Insuring the risk

Choose any of the things that businesses can do to help with retaining risks.

• hire qualified employees

• provide proper training for employees

• practice emergency procedures with staff

• Completely stop the activity that causes the risk

This is something that business's can purchase to help with certain risks?

• capital equipment

• lawyer

• insurance