Duble Mining Ltd.began gold mining operations in Brazil a year ago.Recent change in government policy caused the risk management department to transfer some uninsured risk to satisfy their commercial lenders.Which of the following actions would immediately confirm to the commercial lenders that their requirements have been met?

Question

Quizplus · Accepted Answer

Transferring uninsured risk to a political risk insurance policy would provide coverage and reduce the risk for Duble Mining Ltd. This would satisfy the commercial lenders' requirements and assure them that their investment is protected. Hiring private security, selling shares or engaging in political lobbying may not directly address the issue of risk transfer and may not meet the lenders' requirements.