Risk retention is not a good idea if:
A) the risk is unimportant
B) you did not identify the risk
C) the frequency is so low it almost will never happen
D) the exposure is potentially catastrophic

Question

Quizplus · Accepted Answer

Risk retention means accepting the risk and its potential consequences. If the exposure is potentially catastrophic, risk retention is not a good idea as it could lead to significant financial losses or even bankruptcy. It would be more appropriate to transfer the risk through insurance or mitigate it through risk reduction strategies.

Risk Retention Is Not a Good Idea If