Risk control is intended to prevent or reduce losses. When practicing sound risk control, an organization

Risk control is intended to prevent or reduce losses. When practicing sound risk control, an organization



A. Will not be required to expend economic resources to insure those loss exposures.
B. Is likely to use insurance to treat those loss exposures.
C. Will often be able to eliminate losses from those loss exposures.
D. Is likely to see the same economic benefit as compared to insurance.


Answer: B. When practicing sound risk control, an organization is likely to use insurance to treat large loss exposures.

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