Question

question 2
which risk management alternative is feasible when the likelihood of an event that could cause a financial loss is very low and the potential financial loss due to the event is small?
reduce risk
insure against risk
accept risk
avoid risk

Explanation:

When the likelihood of an event causing financial loss is very low and the potential financial loss is small, it is often more cost - effective to accept the risk. Reducing risk (e.g., through process improvements) may involve costs that exceed the potential loss. Insuring against such a risk may also be costly as insurance premiums are based on risk assessment, and for a low - likelihood and small - loss event, the premium may not be justified. Avoiding risk (e.g., not engaging in a particular activity) may not be practical if the activity has other benefits.

Answer:

Accept risk