Question

How is the likelihood of a loss occurring usually alfected by the existence of a ponr physical hazard?

A. It always remains constant.
B. It may remain constant or increase.
C. It may remain constant or decrease
D. It may increase or decrease

Answer 1

The presence of a poor physical hazard typically increases the likelihood of a loss occurring, but if hazards are managed well, the probability may decrease.

Step-by-step explanation:

The likelihood of a loss occurring is usually affected by the existence of a poor physical hazard such as weak infrastructure, outdated machinery, or unsafe working conditions. In most cases, when there is a poor physical hazard present, the probability of a loss occurring due to accidents, damages, or disruptions increases. This is because these hazards can lead to more frequent and severe incidents.

Conversely, if steps are taken to remove or reduce the physical hazard, the likelihood of a loss may decrease. Therefore, the correct answer is that the likelihood of a loss occurring may increase or decrease depending on the management of the physical hazard.