Risk transfer is the best choice for risks that have a low expected frequency and a high potential severity.

Name: Risk transfer is the best choice for risks that have a low expected frequency and a high potential severity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Risk transfer is a strategy often used for risks that are rare but could have severe consequences, as it allows an organization to shift the financial burden of these risks to another party, such as through insurance.

Risk Transfer Is the Best Choice for Risks That Have