- There are several techniques available for managing risk. For each of the following risks and risk-control methods, give an example of how the method can be implemented.
- Avoidance: the risk of sinking (by human).
- Loss prevention: the risk of family head’s premature death because of a heart attack.
c. Loss reduction (in general): the risk of burning a car because of fire.
- Loss reduction (by duplication): the risk of losing accounting documentation.
- Loss reduction (by separation): the risk of losing all money by pickpockets during a vacation.
- Loss reduction (by diversification): the risk of our bankruptcy because of the bankruptcy of our main customer.
