Which one of the following is not a risk management technique that a risk manager will typically choose for managing pure risks?
A) purchase insurance to cover a risk exposure
B) do nothing about a risk exposure
C) sell a high risk investment to purchase one of lower risk
D) establish a reserve fund.

Question

Quizplus · Accepted Answer

Selling a high-risk investment to purchase one of lower risk is an investment strategy, not a risk management technique for managing pure risks. Pure risks involve situations that can only result in a loss or no change, not a gain, and are typically managed through techniques like insurance, retention, or establishing reserves.

Which One of the Following Is Not a Risk Management