Question

Bev lives in the suburbs and works downtown. She drives to work, and her most direct route to work would require her to pass through an area where carjackings and drive-by-shootings are common. Bev does not drive through this area. Instead, she uses a route which adds 10 minutes to her commute. Which risk management technique is Bev using with respect to the risk of injury while driving through the dangerous area?A) noninsurance transferB) avoidanceC) passive retentionD) loss reduction

Answer 1

Answer:

The correct answer is B. Avoidance.

Explanation:

Avoidance is the act of eliminating one's exposure to risk or hazardous situations or objects.

Bev's route includes a dangerous area which can lead to serious consequences if she passes through it. By avoiding the area, she reduces the possible risks she might be exposing herself to, even if it adds minutes to her commute.