"High" and "low" loss frequency and severity are
A) considered the same for all firms,
B) defined differently for different firms,
C) identifiable by industry standards,
D) unimportant when considering risk avoidance.

Question

Quizplus · Accepted Answer

High and low loss frequency and severity are defined differently for different firms because each firm faces unique risks and has different risk tolerances. What is considered a high loss for one firm might be considered a low loss for another, depending on their financial situation, industry, and specific risk management strategies.

"High" and "Low" Loss Frequency and Severity Are