To offset costs arising from operational risks, FI managers spend considerable efforts on the following:
A)loss prevention, loss control, loss financing and loss insulation
B)loss prevention, loss control, loss investment and loss insulation
C)loss provisioning, loss control, loss financing and loss insulation
D)loss prevention, loss control, loss financing and loss creation

Question

Quizplus · Accepted Answer

Loss prevention and loss control involve measures taken to prevent or mitigate losses, while loss financing and loss insulation refer to the funding and transfer of potential losses to external parties, respectively. Loss investment and loss creation are not relevant concepts in this context. Loss provisioning could be a relevant activity in certain cases, but it is not as comprehensive as the other options listed.

To Offset Costs Arising from Operational Risks, FI Managers Spend