Which of the following risk strategies is most likely to incur opportunity costs?
A) Avoidance
B) Mitigation
C) Transfer
D) Acceptance

Question

Quizplus · Accepted Answer

Avoidance involves completely avoiding or eliminating the risk, which may lead to missed opportunities or potential benefits that could have been gained by taking the risk. This incurs opportunity costs. The other strategies (mitigation, transfer, and acceptance) still involve managing the risk in some capacity, and therefore are less likely to incur opportunity costs.

Which of the Following Risk Strategies Is Most Likely to Incur