Risk transfer is most likely ideal for a risk with
A) a high degree of separation and a low potential severity,
B) a high expected frequency and a low potential severity,
C) a high expected frequency and a high potential severity,
D) a low expected frequency and a high potential severity.

Question

Quizplus · Accepted Answer

Risk transfer is most suitable for risks that occur infrequently but have high potential severity, as the cost and impact of such risks can be significant when they do occur. Insurance is a common method of transferring such risks.

Risk Transfer Is Most Likely Ideal for a Risk with