Financial Risks Unit Test

Question

3 of 203 of 20 Items
Question
What is risk reduction?(1 point)
Responses

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

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

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

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 that accepts that the amount at risk is worth the risk taken or that the cost of risk mitigation is too high.
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Answer 1

The correct answer is: A strategy that reduces risk by minimizing the chance that the loss occurs or reduces the value lost.