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Basic Question 11 of 11
If a risk is considered to offer few rewards and lies outside the core competences of a company, the company should likely try ______ first.
B. risk transfer
C. risk shifting
A. risk prevention and avoidance
B. risk transfer
C. risk shifting
User Contributed Comments 5
| User | Comment |
|---|---|
| khalifa92 | if you could just transfer it. |
| Streberli | What's the difference between shifting and transferring? |
| khalifa92 | risk transfer: changes the risk bearer, risk shifting: changes the distribution of the risk. |
| zriddle | You would prefer to prevent or avoid the risk because it offers few rewards, and therefore would be hard to transfer or shift. |
| 10425406 | isk transfer changes the risk bearer, risk shifting changing the distribution of the risk |
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Learning Outcome Statements
describe methods for measuring and modifying risk exposures and factors to consider in choosing among the methods
CFA® 2024 Level I Curriculum, Volume 6, Module 6.