1Which risk management technique is considered the best?

Group of answer choices

None of the other answers are correct.

Avoidance

Insurance

Non-insurance transfer of risk

Loss prevention

2One of the basic characteristics of insurance is that losses are fortuitous. How would a risk manager best describe what this means?

Group of answer choices

The average loss becomes substituted for the expected loss.

Losses are unexpected and unforeseen by the Insured.

One party agrees to transfer the risk and another party agrees to assume the risk.

None of the other answers are correct.

There are a large number of losses in the group.