Multiple Choice Questions on Insurance and Risk Management Part 1

What is Risk Management?
Everyone knows what risk is; we use the word every day and take risks regularly, whether we realize it or not. In every decision you make, when assessing the pros and cons, you are also doing a risk assessment.
The challenge is to make it a more conscious process where your business is concerned.
So what is risk management?
Risk management is the process of making and carrying out decisions that will minimize the adverse effects of risk on an organization. The adverse effects of risk can be objective or quantifiable like insurance premiums and claims costs, or subjective and difficult to quantify such as damage to reputation or decreased productivity. By focusing attention on risk and committing the necessary resources to control and mitigate risk, a business will protect itself from uncertainty, reduce costs, and increase the likelihood of business continuity and success.