Ch. 8 Risk management Strategies -short answers

Question	Answer
AVOIDANCE	When an activity, procedure, or event is so risky that dire consequences are likely, the organization may chose to avoid that activity
TRANSFERENCE	When activities are associated with high financial risk but low frequency (catastrophic, sport injury) or low financial risk but high frequency (fractures, surgical injuries), a common method to reduce the risk of these activities is to transfer all or part of the risk to another entity.
RETENTION	Every organization have activities or sponsors programs that have a level of risk deemed acceptable in light of organization's mission. The organization accepts and retains risks like these.
REDUCTION	Careful development, implementation, monitoring, and evaluation of policies and procedures can reduce the risk.

Resource summary

	Created by Tamara Jacob about 8 years ago