Examkin

Soru

Zorluk: OrtaMethods of Handling Risk

Fifty independent agricultural cooperatives in the Midwest face similar exposures to highly specialized equipment breakdowns. Finding commercial insurance policies prohibitively expensive, the cooperatives establish a formal agreement to pool their financial resources. Under this agreement, if any single cooperative experiences a catastrophic equipment failure, the repair costs are paid directly from the collective fund to which all members contribute. Which fundamental method of handling risk does this pooling arrangement best illustrate?

  1. A
    Risk transfer
  2. B
    Risk retention
  3. Risk sharingCevap
  4. D
    Risk reduction

Cevap

The pooling arrangement represents risk sharing.
The correct answer accurately identifies that a formal pooling of resources among entities with similar exposures to distribute the financial burden of a loss is the textbook definition of risk sharing.

Adım Adım Çözüm

1
Analyze how the agricultural cooperatives are managing their equipment breakdown exposure.
The cooperatives are not purchasing a commercial policy, nor are they individually absorbing their own losses. Instead, they are pooling their financial resources together.
Identifying the specific mechanism used to handle the financial burden is required to classify the action under the STARR risk handling methods.
2
Evaluate the mechanism against fundamental risk management definitions.
The mechanism aligns perfectly with sharing, as the risk is distributed among members of a formalized group facing similar exposures.
Risk sharing is defined precisely by the pooling of resources by a group of entities with similar risks to pay for the losses of the few who experience them.

Anahtar Kavram

Methods of Handling Risk (Sharing)
Bu soruyu puanla

Konular

Methods of Handling Risk

Bu konudan daha fazla soru