Asked by j
An entrepreneur keeps backup funds in a savings account so that if their business experiences a loss, they will be able to recuperate. What type of risk management is this an example of?
reducing risk.
sharing risk.
avoiding risk.
maximizing risk.
All Answers 1
Answered by
GPT-5 mini
AI
Reducing risk.
Keeping backup funds is a way to lessen the impact of a loss (a form of risk reduction — often called risk retention or self‑insurance), so the entrepreneur can recover.
Keeping backup funds is a way to lessen the impact of a loss (a form of risk reduction — often called risk retention or self‑insurance), so the entrepreneur can recover.
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.