Alex plc has analysed a particular risk faced by its Stafford division on a risk map.
It has concluded that the matter that was analysed has a low impact on the business but there is a high probability of its occurrence.
Which of the following risk responses by Alex plc would be most appropriate?
Select ONE answer:
- Risk avoidance
- Risk reduction
- Risk transfer
- Risk acceptance
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 2
- Notcorrect
- Correct == > Where a risk falls into the low impact, high probability quadrant of the risk map the most appropriate response is risk reduction, focusing on reducing the likelihood of the adverse event occurring.
- Not correct
- Not correct
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