Arkansas Insurance Adjuster Practice Exam

Which of the following is NOT a risk management technique?

1. Risk reduction

2. Risk retention

3. Risk equality

4. Risk avoidance

The correct answer is: Risk equality

The most effective risk management techniques involve taking proactive measures to mitigate or reduce potential risks. Option A focuses on minimizing potential risks, option B involves accepting and managing risks internally, and option D involves completely avoiding potential risks. Option C, risk equality, does not describe a specific risk management technique and therefore is not a valid answer. It is important to carefully evaluate and select risk management techniques based on the specific circumstances and potential risks involved, rather than opting for a blanket approach like risk equality.