Risk assumption occurs when you believe the cost of the loss you might incur is less than the cost of risk avoidance or risk transfer.

Question

Quizplus · Accepted Answer

Risk assumption involves accepting the potential for loss rather than trying to avoid it or transfer it to another party, often because the cost of potential loss is deemed lower than the costs associated with avoiding or transferring the risk.

Risk Assumption Occurs When You Believe the Cost of the Loss