Question

Which of the following is TRUE on the risk matrix?

Group of answer choices

A) I should transfer the infrequent risk that my dog eats a one-dollar bill.

B) The most appropriate method for a grocery store to manage its high-frequency shoplifting risk is loss reduction.

C) We should avoid the high-frequency risk of death caused by dangerous jobs such as pearl diving without scuba.

D) The most appropriate method to manage a high-frequency and high-severity risk is buying insurance.

PreviousNext

Answer 1

C) We should avoid the high-frequency risk of death caused by dangerous jobs such as pearl diving without scuba

Explanation: Option C is the right choice. The risk involved is severe (risk of death) and it is frequent. These kinds of risk should be avoided as correctly stated in the question.

option D, involves high frequency and highly severe risk which is meant to be avoided and not transfered. So, the option is wrong.

Option A is wrong. This is because it is infrequent and non severe risk which is meant to be retained and not transfered.

Option B is also wrong. This is because it is a severe and non frequent event, which should be transfered rather than the risk being reduced.