Casualty Actuarial Society (CAS) Practice Exam

Question: 1 / 400

Which of the following is NOT one of the common techniques risk management professionals use to treat risks?

Modification

Regulation

Regulation is not commonly recognized as a technique used by risk management professionals to treat risks. Instead, regulation typically refers to the rules or laws imposed by governmental or regulatory authorities that govern how risks should be managed or mitigated within a specific industry. While regulatory frameworks can influence how risk management is performed, they are not a direct risk management technique like the others listed.

On the other hand, modification involves changing the risk itself or the way it is assessed, retention refers to accepting the risk and preparing for its consequences, often seen in self-insurance practices, and transfer involves shifting the risk to another party, such as through insurance policies. These methods directly address the management and treatment of risks, highlighting their proactive nature in the risk management process.

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Retention

Transfer

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