Question

The risk associated with the unlikelihood that one of the key members will be struck by lightning would most likely be handled by which of the following?

A) Mitigating
B) Retaining
C) Ignoring
D) Transferring
E) Avoiding

Answer 1

The risk of a key member being struck by lightning is typically handled by transferring it through insurance, as the consequences of such a low-probability event can be significant.

Step-by-step explanation:

The risk associated with the unlikelihood that one of the key members will be struck by lightning would most likely be handled by transferring the risk. This is typically done through purchasing insurance, which allows an organization or individual to transfer the financial burden of such a low-probability but high-impact event to an insurance company. While the probability of the event is extremely low, the consequences would be significant, therefore it is not ignored, mitigated, retained, or avoided, but rather transferred to manage the potential financial impact more effectively.

Answer 2

B) Retaining

Step-by-step explanation:

The risk retaining refers to the risk in which the company takes the decision that represents the responsibility for some specific risk i.e. opposed to the risk transfer over and above to the insurance company

Here the risk retain is adopted when the doing cost is less than the fully or partially cost

In the given situation, since it is mentioned that the risk is attached with the unlikelihood and struck from lighting so this is to be handled by retaining

hence, the correct option is B. Retaining