Question

16. If a business chooses an alternative strategy

that does not pose a particular risk, what kind
of risk management strategy is it practicing?
a. avoiding risk
c. insuring risk
b. transferring risk
d. assuming risk

Answer 1

A. Avoiding Risk

Step-by-step explanation:

When a company is trying to avoid risks it finds alternative strategies to get a job done when they feel it is viable than taking a risk. This is a defensive option often chosen by firms when they do not see the possible reward being worth the risk in a particular strategy.

When this form of strategies are used in management it means that the company would rather stay stable than go for higher while risking their basic business.