Alpha Corp has discovered that one of its products is potentially dangerous.It therefore has purchased liability insurance.It has employed a form of risk management known as

Question

Quizplus · Accepted Answer

Alpha Corp has shifted the risk of potential liability to the insurance company through the purchase of liability insurance, which is a form of risk shifting. Risk capitalization involves setting aside funds to cover losses, while risk elimination involves completely removing the risk. Risk acceptance involves acknowledging and assuming the risk, while risk avoidance involves taking steps to avoid the risk altogether.

Alpha Corp Has Discovered That One of Its Products Is