nerdexam
BCS-ISEB

ISEB-PM1 · Question #562

Many companies self insure against some risk. Problems which can arise from self-insurance include:

The correct answer is B. Both 1) failure to reserve funds to handle worst case scenarios (low probability events). You've hit your weekly limit · resets 5am (America/New_York)

Risk Management

Question

Many companies self insure against some risk. Problems which can arise from self-insurance include:

Options

  • Aconfusion of business risks with insurable risks.
  • BBoth 1) failure to reserve funds to handle worst case scenarios (low probability events)
  • Cstiff competition from insurance companies
  • DAll of the other alternatives apply.
  • Efailure to reserve funds to handle worst case scenarios (low probability events) resulting in

How the community answered

(27 responses)
  • A
    11% (3)
  • B
    81% (22)
  • C
    4% (1)
  • D
    4% (1)

Explanation

You've hit your weekly limit · resets 5am (America/New_York)

Topics

#self-insurance#risk financing#contingency reserve#insurable risk

Community Discussion

No community discussion yet for this question.

Full ISEB-PM1 Practice