The strategy of eliminating (or almost eliminating) risks by taking a small share in many independent events or by taking advantage of the predictability associated with large numbers of independent events is known as:
A)floating.
B)specializing.
C)pooling.
D)screening.

Question

Quizplus · Accepted Answer

This strategy is known as "pooling", which involves spreading risks by combining many independent risks into a single portfolio. This reduces the impact of any single event and increases predictability. Floating is not a commonly used term in risk management, specializing refers to focusing on a specific area of expertise, and screening involves identifying and selecting clients or projects with the lowest level of risk.

The Strategy of Eliminating (Or Almost Eliminating) Risks by Taking