Question

An apartment complex property manager has concerns about the owners' liability for possible drownings in the pool. They talk to the owners, who ultimately decide to drain and backfill the pool. This is an example of which of the following ways of managing risk?

a) Transferring risk

b) Accepting risk

c) Avoiding risk

d) Mitigating risk

Answer 1

Draining and backfilling the pool to address drowning concerns at an apartment complex is an example of Avoiding risk, which eliminates the risk altogether.

Step-by-step explanation:

The apartment complex property manager's concerns about the owners' liability for possible drownings in the pool, leading to the decision to drain and backfill the pool, is an example of c) Avoiding risk. This risk management strategy involves taking steps to remove the risk entirely. In this case, by eliminating the pool, the apartment complex owners are completely removing the risk of drownings at their property. By doing so, the owners are avoiding potential liability and ensuring the safety of their residents.Hence they are not transferring, accepting, or mitigating the risk, but rather avoiding it entirely.