In addition to avoidance and adaptation, two other means of risk reduction available to managers are ________ and ________.

Question

Quizplus · Accepted Answer

Dependency refers to reducing risk by diversifying the sources of resources, suppliers or markets, thus reducing dependence on any one source. Hedging involves reducing risk by offsetting one's exposure to specific risks through the use of financial instruments such as insurance, futures contracts, or options.

In Addition to Avoidance and Adaptation, Two Other Means of Risk