Which risk management alternative is feasible when the likelihood of an event that could cause a financial loss is low and the potential financial loss due to the event is small?

Question

Quizplus · Accepted Answer

When the likelihood of an event is low and the potential financial loss is small, it may be more cost-effective to simply accept the risk rather than invest time and money in avoiding or reducing it. Insuring against such small risks may also be unnecessary as the premiums would likely outweigh the potential loss. Therefore, accepting the risk is the most feasible and cost-effective alternative.

Which Risk Management Alternative Is Feasible When the Likelihood of an Event