Final answer:
An example of a cost of risk for an insured organization would be insured losses, as they represent direct costs related to covered claims. Costs for sprinkler systems are mitigating measures, and insurer claim handling expenses are borne by insurers. Administrative costs are significant for insurance businesses which balance premiums, claims payments, and investment income for profitability.
Step-by-step explanation:
To an insured organization, an example of a cost of risk associated with an asset or activity would be B. Insured losses. This is because the cost of risk essentially refers to any cost that an organization incurs to mitigate risks, cover losses, or administer risk management activities. Costs such as those for sprinkler systems are considered as risk control measures that potentially reduce insured losses, but they are not a cost of risk in themselves. Instead, the cost of installing and maintaining these systems would be an investment in minimizing potential risks.
Insurer claim handling expenses are costs for insurance companies rather than the insured organization. However, insured losses are direct costs related to claims that the organization suffers and that are covered by an insurance policy. Fees for registering stock on exchanges are not related to insurance or risk management but are instead regulatory costs associated with maintaining a publicly-traded company. Insurance companies are also concerned with managing their own administrative costs, which include hiring workers, administering accounts, and processing insurance claims.