When should a risk be avoided?

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Looking for the answer to the question below related to Insurance?

When should a risk be avoided?

 Options:

 

  • 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

 

The Correct Answer Is:

  • B. When the risk event is unacceptable — generally one with a very high probability of Occurrence and high impact

Conclusion

I hope you got the answer to your question.

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