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Manage risk.Not sure about quantity of the words.No need a perfect assignment, just to be competent.

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Manage risk.Not sure about quantity of the words.No need a perfect assignment, just to be competent.
Answered Same Day Mar 21, 2020

Solution

Aarti J answered on Mar 24 2020
147 Votes
Knowledge Questions
1. What is risk management? What factors of risk are addressed by managing risk?
Answer:
Risk management can be said as the method which helps in managing and mitigating the risks. Risk is termed as the situation which can have uncertainty about the outcome. It can be said as the possible mean which can help in reducing the risk. The process of risk management can take into consideration, the identification of the risk, evaluating the occu
ence and the frequency of the losses that can be done through the risk and then looking for the method to mitigate and manage the risk.
Some of the major factors of risks that are addressed by managing the risk includes minimizing the losses, these losses can be financial losses, and personal losses. Certain risks related to projects can also be mitigated using the risk management.
2. What is risk avoidance? Give an example.
Answer:
Risk avoidance is a strategy where the level of activity in a particular event is zero, i.e. the activity is not conducted or pursued by a person. In this case, the exposure to the losses is totally eliminated.
Example: A trucking company has got a contract to transport harmful gases from one place to another. If the gas leaks there is a risk that it may harm the workers and the drivers. So, to avoid the risk, the company may not take the contract, so in that case he will he is avoiding the risk of harming its workers.
3. Describe the reduction of risk.
Answer:
Reduction of risks is the method which can help in reducing the adversity of the risk. Example: When an individual is doing an investment, the risk can be reduced if the investor uses diversification policy and follows different diversification and investment analysis. It can be said as taking precautionary measures which can help in reducing the likelihood of the risk occu
ence and reducing the possible losses.
4. Describe risk minimisation.
Answer:
Risk minimization is the measure which aims in minimizing the risk, the risk minimization includes risk prevention as well as risk mitigation. The risk minimization considers the strategy which can help in mitigating the risk. It is the process which can help in reducing the impact of the risk. One of the common places when risk minimization is used is healthcare, aircraft and dread risks.
5. Describe transfer of risk.
Answer:
Transfer of risk is a control strategy where there is a contractual shifting of the risk from one party to the other party. Example: Insurance policy is one of the strategies which is considered as the transfer of risk. In the insurance, the risk of a particular item or event is transfe
ed from the policyholder to the insurance company. Transfer of risk helps in controlling the risk adequately and reducing its effect.
6. Describe risk elimination.
Answer:
Risk elimination means eliminating or getting rid of some event. The companies can take several measures with which they can totally eliminate the risk like using hand tools instead of the machine tool to eliminate the risk of accidents. It is a proactive technique of managing the risk.
7. Discuss the relationship between avoidance and elimination.
Answer:
Risk avoidance is a strategy where the level of activity in a particular event is zero, i.e. the activity is not conducted or pursued by a person. It is one of the strategies which helps in preventing the attacks on the organisational assets, example segregation of duties, limited access to the assets by the personnel. Risk avoidance is a control strategy whereas risk elimination is to get rid of the event. Both risk avoidance and elimination has positive relationship and results in getting rid of the particular risks. They both are related, but the risk avoidance occurs before the exposure of the risk whereas risk elimination can take place when the risk has incu
ed.
8. Give one reason why do we do not transfer all risks by using insurance.
Answer:
Insurance is...
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