What are the four major ways of dealing with risk?
A) control, retention, transfer, and avoidance
B) avoidance, retention, control, and retirement
C) control, retention, retirement, and avoidance
D) avoidance, retention, retrenchment, and control

Question

Quizplus · Accepted Answer

Control involves taking steps to reduce the likelihood or impact of the risk; retention involves accepting the risk and handling the consequences if it occurs; transfer involves shifting the risk to another party, such as through insurance or outsourcing; avoidance involves completely avoiding the risk. These four options represent the most common approaches to dealing with risk. Option B includes "retirement," which is not a recognized approach to risk management. Option C includes "retirement," again not a recognized approach. Option D includes "retrenchment," which is not a recognized approach to risk management.

What Are the Four Major Ways of Dealing with Risk