Purchase Solution

Risk Avoidance and Risk Retention

Not what you're looking for?

Ask Custom Question

a. Discuss how risk avoidance might prove advantageous in your company or one with which you are familiar.

b. How do the concepts of risk retention and risk transfer apply to your company or one with which you are familiar.

c. Congratulations! You have just been promoted to the position of Supervisor of Risk Management for your department or one with which you are familiar. discuss 2 or 3 things you would do (include why you would do those things).

Purchase this Solution

Solution Summary

The expert discusses how risk avoidance might prove advantageous in a company. The concepts of risk retention and risk transfer are applied to the chosen company.

Solution Preview

a. Discuss how risk avoidance might prove advantageous in your company or one with which you are familiar.

Answer:
Risk avoidance can be defined as the company position to not engage itself in the risky project or operation. It is some time beneficial if the level of risk is higher and the company can not diversify it.
Risk that can be diversified should not be avoided but those risks like high level of uncertain risk over company project to give positive NPV can be avoided other wise this can add risk to the company operations rather than diversifying. As we know that the higher the risk, the higher return a company can get but if the risk is beyond the control of the ...

Solution provided by:
Education
  • MBA, Indian Institute of Finance
  • Bsc, Madras University
Recent Feedback
  • "I've posted a similar question for another course. It's post 657940, and it's a practice problem that I'd like to use for the final exam. Your help will be greatly appreciated. "
  • "thank you!"
  • "Thank you again Jayant. You are super fast. "
  • "Thank you Jayant. You are appreciated. "
  • "Again, thank you Jayant. You are wonderful. "
Purchase this Solution


Free BrainMass Quizzes
Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.