Discuss four methods of handling risks

      

Discuss four methods of handling risks

  

Answers


Simon
• Risk sharing. This involves sharing risks through cooperatives. The organizations forming the cooperative takes their funds and pool them together each bearing only apportion of risk that the enterprise will fail.
• Risk avoidance. Risks can be avoided by not engaging in actions that would give rise to risk.
• Risk transfer. Risks can be transferred from one organization tot eh other that is more willing and capable of bearing the risk. Risk can be transferred through insurance contracts.
• Risk retention. This involves a company retaining the risk rather than avoiding it or sharing it. Risk retention may be voluntary or involuntary. It is the best method of handling risks.
• Risk reduction. This method involves trying to reduce the exposure to risks. It can be achieved through safety and loss prevention programs.

skilled writter answered the question on May 1, 2018 at 16:18


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