1. AML Bank provides easy and fast personal finance and personal loans access to meet various personal financial needs. Before accepting loan applications, the bank preforms an extensive background credit check on the applicants to assess the likelihood of a loan default. This treatment represents:
   1. Avoidance
   2. Loss reduction
   3. Loss prevention
   4. Non-insurance transfers
2. An agriculture company is mainly involved in growing and harvesting cotton as a raw material for export. At the end of each harvest, the price could decrease or increase based on the global supply and demand for cotton. Possible adverse changes in the price of cotton is a(n)

1. Financial risk
2. Strategic risk
3. Operational risk
4. Compliance risk