You are the owner of the courier company SpeeDelivery. You have carried out a risk analysis and now want to determine your risk strategy. You decide to take measures for the large risks but not for…

Question

Options

• ARisk bearing
• BRisk avoiding
• CRisk neutral

• A
  9% (5)
• B
  14% (8)
• C
  78% (45)

Explanation

Risk neutral (C) is correct because it describes a selective approach: taking action to address large risks while accepting small risks as tolerable. This balanced, middle-ground stance is exactly what SpeeDelivery is doing - not ignoring all risks, but not treating every risk equally either.

Option A (Risk bearing) is wrong because risk bearing means accepting all risks without taking any protective measures, regardless of their size. SpeeDelivery is actively managing the large risks, so it is not purely bearing them.

Option B (Risk avoiding) is wrong because risk avoidance means eliminating a risk entirely - for example, refusing to deliver to dangerous areas. SpeeDelivery is not withdrawing from activities; it is simply deciding which risks warrant a response.

Memory tip: Think of "neutral" as a scale balanced in the middle - large risks tip the scale enough to act, but small risks don't. If you remember that "neutral" = selective, you won't confuse it with "bearing" (accept all) or "avoiding" (eliminate all).

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