Risk Avoidance is a Risk Management Technique that: Eliminates risk Increases risk Reduces risk Counterbalances risk

Risk avoidance seeks to avoid compromising events entirely by not taking an action that involves risk Example – Quentin’s Scooters decides not to open a new store on the coast of Florida in order to avoid the potential risks of unreliable employees, liability lawsuits, and windstorm damage.

Risk Avoidance is a Risk Management Technique that: Eliminates risk Counterbalances risk Increases risk Reduces risk

Risk avoidance Risk retention Risk reduction Risk transference Bee’s Wax Tech Company wants to purchase several large properties in Maine for a new office. As a result of this major purchase, they are a little low on money and decide to save money by not purchasing insurance on their new properties. Bee’s Wax is practicing: Risk avoidance Risk retention Risk reduction Risk transference

Risk retention - Acceptance means that we accept the identified risk. Bee’s Wax Tech Company wants to purchase several large properties in Maine for a new office. As a result of this major purchase, they are a little low on money and decide to save money by not purchasing insurance on their new properties. Bee’s Wax is practicing: Risk avoidance - Risk avoidance seeks to avoid compromising events entirely by not taking an action that involves risk Risk retention - Acceptance means that we accept the identified risk. Risk reduction - (mitigation) deals with reducing the likelihood and severity of a possible loss. Risk transference - management and control strategy that involves the contractual shifting of a pure risk from one party to another.

Risk avoidance Risk retention Risk reduction Risk transference Bee’s Wax Tech Company wants to purchase several large properties in Maine for a new office. As a result of this major purchase, they are a little low on money and decide to save money by not purchasing insurance on their new properties. Bee’s Wax is practicing: Risk avoidance Risk retention Risk reduction Risk transference

Risk avoidance Risk retention Risk reduction Risk transference Canva Capital has just been offered a great deal on ten large properties in Halifax, VA. The economy ins Halifax has been declining recently, but the execs of Canva expects it to recover soon. This could be an exceptional opportunity for Canva, but it’s also pretty risky So Canva decides to pass on the deal. Canva Capital is practicing… Risk avoidance Risk retention Risk reduction Risk transference

Canva Capital has just been offered a great deal on ten large properties in Halifax, VA. The economy ins Halifax has been declining recently, but the execs of Canva expects it to recover soon. This could be an exceptional opportunity for Canva, but it’s also pretty risky So Canva decides to pass on the deal. Canva Capital is practicing… Risk avoidance - Quentin’s Scooters decides not to open a new store on the coast of Florida in order to avoid the potential risks of unreliable employees, liability lawsuits, and windstorm damage. Risk retention - Quentin’s Scooters retains the risk of damage to their company trucks by choosing not to purchase comprehensive insurance coverage for them. Risk reduction - Quentin’s Scooters reduces risk by renting a store, rather than buying a building for its shop. They also implement random employee drug testing and a building alarm system. Risk transference - Quentin’s Scooters transfers the risk of wind & hail damage to the insurance company by purchasing property insurance for their building.

Risk avoidance Risk retention Risk reduction Risk transference Canva Capital has just been offered a great deal on ten large properties in Halifax, VA. The economy ins Halifax has been declining recently, but the execs of Canva expects it to recover soon. This could be an exceptional opportunity for Canva, but it’s also pretty risky So Canva decides to pass on the deal. Canva Capital is practicing… Risk avoidance Risk retention Risk reduction Risk transference

Which of the following is not a risk management technique? Risk avoidance Risk retention Risk reduction Risk equality

Which of the following is not a risk management technique? Risk retention - Acceptance means that we accept the identified risk. Risk reduction - Risk reduction is a strategy of dealing with risks that consists in taking some measures (countermeasure) to reduce the level of risk. Risk equality - NIIT Risk avoidance - the elimination of hazards, activities and exposures that can negatively affect an organization's assets.

Which of the following is not a risk management technique? Risk avoidance Risk retention Risk reduction Risk equality

Roxanne needs more floor space in her antique furniture store, so she buys a storage building 3 miles away. She is worried about keeping the furniture in the storage building safe, so she puts in an alarm system and smoke detectors. By purchasing the alarm system and smoke detectors, Roxanne is practicing: Risk avoidance Risk retention Risk reduction Risk transference

Roxanne needs more floor space in her antique furniture store, so she buys a storage building 3 miles away. She is worried about keeping the furniture in the storage building safe, so she puts in an alarm system and smoke detectors. By purchasing the alarm system and smoke detectors, Roxanne is practicing: Risk avoidance - Quentin’s Scooters decides not to open a new store on the coast of Florida in order to avoid the potential risks of unreliable employees, liability lawsuits, and windstorm damage. Risk retention - Quentin’s Scooters retains the risk of damage to their company trucks by choosing not to purchase comprehensive insurance coverage for them. Risk reduction - Quentin’s Scooters reduces risk by renting a store, rather than buying a building for its shop. They also implement random employee drug testing and a building alarm system Risk transference - Quentin’s Scooters transfers the risk of wind & hail damage to the insurance company by purchasing property insurance for their building.

Risk avoidance Risk retention Risk reduction Risk transference Roxanne needs more floor space in her antique furniture store, so she buys a storage building 3 miles away. She is worried about keeping the furniture in the storage building safe, so she puts in an alarm system and smoke detectors. By purchasing the alarm system and smoke detectors, Roxanne is practicing: Risk avoidance Risk retention Risk reduction Risk transference

Risk avoidance Risk retention Risk reduction Risk transference Performing Instruments has just been offered a great deal on a bulk purchase of monitors from a new company called Circuit City. They’ve never purchased appliances from Circuit City, so they’re hesitant to make such a large purchase. Finally, Circuit City offers to provide 10 year warranties for each of the monitors. This is an example of: Risk avoidance Risk retention Risk reduction Risk transference

Risk avoidance - the elimination of hazards, activities and exposures that can negatively affect an organization's assets. Risk retention - Acceptance means that we accept the identified risk. Risk reduction - (mitigation) deals with reducing the likelihood and severity of a possible loss. Risk transference - One example is the purchase of an insurance policy, by which a specified risk of loss is passed from the policyholder to the insurer.

Risk avoidance Risk retention Risk reduction Risk transference Performing Instruments has just been offered a great deal on a bulk purchase of monitors from a new company called Circuit City. They’ve never purchased appliances from Circuit City, so they’re hesitant to make such a large purchase. Finally, Circuit City offers to provide 10 year warranties for each of the monitors. This is an example of: Risk avoidance Risk retention Risk reduction Risk transference

Risk avoidance Risk retention Risk reduction Risk transference Quimby hopes to purchase a new insurance policy for his car, but he has an extremely poor driving record. The insurance company decides to issue Quimby an insurance policy, but charges him a premium much higher than the average driver. The insurance company is practicing: Risk avoidance Risk retention Risk reduction Risk transference

Quimby hopes to purchase a new insurance policy for his car, but he has an extremely poor driving record. The insurance company decides to issue Quimby an insurance policy, but charges him a premium much higher than the average driver. The insurance company is practicing: Risk avoidance - the elimination of hazards, activities and exposures that can negatively affect an organization's assets. Risk retention - Acceptance means that we accept the identified risk. Risk reduction - Risk reduction is a strategy of dealing with risks that consists in taking some measures (countermeasure) to reduce the level of risk. Risk transference - One example is the purchase of an insurance policy, by which a specified risk of loss is passed from the policyholder to the insurer.

Quimby hopes to purchase a new insurance policy for his car, but he has an extremely poor driving record. The insurance company decides to issue Quimby an insurance policy, but charges him a premium much higher than the average driver. The insurance company is practicing: Risk avoidance Risk retention Risk reduction Risk transference