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CTP · Question #869

CTP Question #869: Real Exam Question with Answer & Explanation

The correct answer is D. Catastrophic losses could result in bankruptcy.. See the full explanation below for the reasoning.

Question

  • (Topic 9) What is the primary weakness of a risk management policy that includes risk control without specifically providing a plan for risk financing?

Options

  • AResources are used to pay for losses that could have been prevented.
  • BFunding must be set aside for self-insurance.
  • CThere is an increase in the potential for claims of negligence.
  • DCatastrophic losses could result in bankruptcy.

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