Which risk mitigation strategies include outsourcing services and purchasing insurance?Select one:acceptancereductionavoidancetransfer
Question
Which risk mitigation strategies include outsourcing services and purchasing insurance?Select one:acceptancereductionavoidancetransfer
Solution 1
Solution 2
The risk mitigation strategies that include outsourcing services and purchasing insurance are known as risk transfer strategies. Risk transfer is a risk management and control strategy that involves the contractual shifting of a pure risk from one party to another. One example is the purchase of an insurance policy, by which a specified risk of loss is passed from the policyholder to the insurer. Similarly, outsourcing services can also be a form of risk transfer as the responsibility of managing certain risks is passed to the third-party service provider.
Similar Questions
Companies that outsource strategically important operations run the risk ofMultiple choice question.assuming too much control over critical operations.reducing operating costs of the company that they partner with.weakening their ability to sustain their competitive advantage in areas vital to the company's success.reducing the capabilities of the company responsible for performing the outsourced activity.
In addressing a risk that has low potential impact and relatively high cost of mitigation or reduction, which strategy will accept the risk and its consequences?risk avoidancerisk retentionrisk sharingrisk reduction
What can a company do to reduce the risk of an outsourcing company entering the market and becoming a competitor?Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aoutsource non-core workberect strategic blockscestablish trustdmonitor the outsource arrangement
Which of the following are disadvantages of outsourcing?Loss of control over business processesIssues of turnaround timePotential loss of sensitive dataAll of the above
Outline three advantages and three disadvantages of outsourcing.
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