The nature of risks lends them to a three-step risk management process that can be applied to situations where disruptions are possible. There are three steps to the process. Which of the following is not one of those steps?

Question

Quizplus · Accepted Answer

Insuring to protect against risks is not one of the three steps in the risk management process. The three steps are: identifying the sources of potential disruptions, assessing the potential impact of the risk, and developing plans to mitigate the risk. Insuring is a common risk management technique, but it would fall under the category of risk financing, which is not one of the primary steps in the risk management process.

The Nature of Risks Lends Them to a Three-Step Risk