Question

In addition to avoidance and adaptation, two other means of risk reduction available to managers are ________ and ________. A. qualitative approach; quantitative approach B. dependency; hedging C. checklisting; blocklisting D. protectionist approach; stability approach

Answer 1

Answer:

(b). dependency and hedging.

Explanation:

In the management of risk, four common approaches for reducing risk are;

i. Avoidance: Especially if a risk involved in the management of a resource (or project) poses or presents a negative consequence, the best way to manage the risk simply avoid it by making sure it doesn't happen. This can be by cancelling a project or restructuring it.

ii. Adaptation: Another way of managing the risk associated with a resource (human or non-human resource) is to control the risk either by increasing resilience or reducing vulnerability. This is called adaptation.

iii. Dependency: This means accepting the risk since every project or business has inherently in it some risk associated. Dealing with it might be a way out especially knowing that there might be some experience to be gained in order to tackle similar situation in the future.

iv. Hedging: This means transferring the risk to some other business or organization. An example might be to get an insurance to manage this risk. In this case, the risk is transferred to the insurance company.

Answer 2

thanks for helping me understand better