Consider the differences between international risk management and domestic risk management.Which one of the following would be the least important concern in the international risk management function?
A)the physical perils causing the losses
B)the problem of foreign currency value fluctuations
C)political risks, meaning the unexpected intervention by foreign governments
D)the foreign risk financing and insurance arrangements

Question

Quizplus · Accepted Answer

Physical perils causing the losses would be an important concern in both international and domestic risk management, but compared to foreign currency value fluctuations, political risks, and foreign risk financing and insurance arrangements, it would be the least important concern in international risk management.

Consider the Differences Between International Risk Management and Domestic Risk