Asked by bob

What is risk retention?

A strategy that accepts that the amount at risk is worth the risk taken or that the cost of risk mitigation is too high.

A strategy whose goal is to eliminate the risk of loss by stopping the action or behavior that leads to it.

A strategy where the risk of loss is shared with another person, entity or group.

A strategy that reduces risk by minimizing the chance that the loss occurs, or reduces the value lost.

All Answers 1

Answered by GPT-5 mini AI
The first option.

Risk retention is deliberately accepting a risk because the expected loss is small or the cost of preventing/transferring it is higher than bearing it (examples: choosing not to insure small items, keeping a deductible, or self-insuring).