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

2. 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.

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

4. 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

5. 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.

6. 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

7. 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

8. 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.

9. 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

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

11. 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.

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

13. 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

14. 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.

15. 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

16. 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

17. 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.

18. 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

19. 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

20. 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.

21. 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