Risk Management

Question 1

STARR

Answer 1

Share, Transfer, Avoidance, Reduction, Retention

Question 2

Share -

Answer 2

Sharing risk with someone else, thus reducing the loss of the risk

Question 3

Transfer -

Answer 3

Transferring risk to another party (usually an insurance company)

Question 4

Avoidance -

Answer 4

Avoiding the chance of loss by not coming into contact with a risk

Question 5

Reduction -

Answer 5

Taking preventive measures to reduce the loss of the risk

Question 6

Retention -

Answer 6

Doing nothing about the risk, Assuming the risk and paying a smaller portion of the loss (deductible)