CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

If a risk is considered to offer few rewards and lies outside the core competences of a company, the company should likely try ______ first.

A. risk prevention and avoidance
B. risk transfer
C. risk shifting
Correct Answer: A

Risk prevention and avoidance is probably the first choice of measures.

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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