The Cool Corporation is a medium sized business that has an…

The Cool Corporation is a medium sized business that has an annual revenue of $25 million. The Cool Corporation faces a loss exposure = the probability of this loss exposure occurring is 0.001%. However, if the loss exposure does occur (although very unlikely) it will result in $25 million in damages. Which risk management option should the Risk Manager of The Cool Corporation choose for this loss exposure?

Suppose a firm faces a risk that is both very high frequency…

Suppose a firm faces a risk that is both very high frequency and very high severity. Unfortunately, this risk is associated with an activity that is essential to its business operations, meaning the activity must be continued or the business simply will not be able to operate at all.  Which of the following risk management strategies should this firm utilize to manage this difficult loss exposure?

Two different strains of plant exhibit a recessive phenotype…

Two different strains of plant exhibit a recessive phenotype of white flowers. When crossed, they produce offspring with wild-type purple flowers. This phenomenon of obtaining purple flowers is called __________ and it indicates that _________________________________.

Smart Home Designs Inc. is a company that produces high-end…

Smart Home Designs Inc. is a company that produces high-end “smart home products”. One afternoon, a fire breaks out in their production facility, destroying a critical piece of machinery that produces most of the “smart product’s” circuit boards. Smart Home Designs contacts the manufacturer of the machine, and arranges for expedited shipping of a replacement machine which costs a whopping $10,000. Despite this, the earliest the machine can arrive is in seven days. As a result, Smart Home Designs is unable to manufacture or sell any smart home products for at least one week. The underlined portion of the above scenario is example of what? 

The Cool Corporation is a medium sized business that has an…

The Cool Corporation is a medium sized business that has an annual revenue of $25 million. The Cool Corporation faces a loss exposure = the probability of this loss exposure occurring is 0.001%. However, if the loss exposure does occur (although very unlikely) it will result in $25 million in damages. Which risk management option should the Risk Manager of The Cool Corporation choose for this loss exposure?