Risk management is concerned with
A)the identification and treatment of loss exposures.
B)the management of speculative risks only.
C)the management of pure risks that are uninsurable.
D)the purchase of insurance only.

Question

Quizplus · Accepted Answer

Risk management involves identifying potential exposure to losses, and developing strategies to manage those risks. This can involve a number of approaches, from avoiding or reducing risks, to transferring them through insurance, to accepting and managing them. Risk management is concerned with both pure risks (such as natural disasters or liability claims) and speculative risks (such as stock market investments) that can impact an organization. The focus is on managing risks, rather than simply purchasing insurance coverage.

Risk Management Is Concerned with