Arkansas Insurance Adjuster Practice Exam

Which of the following is NOT a risk management technique?

1. Risk equality

2. Risk retention

3. Risk reduction

4. Risk avoidance

The correct answer is: Risk equality

Risk equality is not a risk management technique because it does not involve actively managing or addressing potential risks. Instead, it refers to the concept of distributing risk equally among different parties or individuals. This is not considered a risk management technique as it does not actively mitigate or address potential risks. Additionally, risk management techniques are typically focused on reducing the impact or likelihood of risks, whereas risk equality does not directly address risks in this manner. Therefore, options B, C, and D are all considered risk management techniques as they involve actively managing or reducing potential risks.