Life & Health · Question-card directory

QUESTION CARD Q005 · FOUNDATIONS & CONTRACTS

Risk Management

Understand the answer, compare the alternatives, and review the related terms.

CARD Q005

An employer installs protective guards on machinery to lower injury frequency. Which risk-management method is this?

  1. Risk reduction
  2. Risk transfer
  3. Risk avoidance
  4. Risk retention
CORRECT ANSWER · A

Risk reduction

The activity continues, but precautions reduce the likelihood of loss. Avoidance would eliminate the activity.

Why each choice is right or wrong

A. Risk reduction

Correct. The activity continues, but precautions reduce the likelihood of loss. Avoidance would eliminate the activity.

B. Risk transfer

Incorrect. Transfer shifts financial responsibility; the employer instead changes the machinery’s safety.

C. Risk avoidance

Incorrect. Avoidance would stop the hazardous activity rather than continue it with guards.

D. Risk retention

Incorrect. Retention means bearing risk rather than reducing the likelihood of injury.

Review the related terms

Use these lessons to revisit the concepts and try additional practice questions.

Sources & further reading