Which of the following approaches is often recommended for enterprises to control a risk that has a high impact and a low likelihood of occurrence?
A) To purchase insurance
B) To discontinue the activity from which the risk results
C) To ignore the risk
D) To convince the enterprises' competitors to engage in the same risky activity
E) To charge higher prices to consumers in case the risk results in loss

Question

Quizplus · Accepted Answer

Purchasing insurance is a common strategy for managing risks that have a high impact but low likelihood, as it transfers the financial burden of the risk to the insurer.

Which of the Following Approaches Is Often Recommended for Enterprises