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- Question 37 What is the greatest challenge that is unique to conducting and interpreting risk prioritization exercises? a. Risk analysis, evaluation, and prioritization are processes that require regular updates b. The assumption that different risk criteria (such as likelihood and impact) carry equal weight in the analysis c. Attaching numbers to measure of risk requires a degree of subjectivity and judgment d. Likelihood and impact are not the only risk criteria that the organization needs to considerQuestion 3George, a Pharmacist, has recently graduated from college where he did most of his coursesonline. He has no experience in management and is interested in opening his own Pharmacy in arural community where he is of the belief that there is a demand.George has approached you, a third-year student pursuing a Bachelor’s Degree in BusinessAdministration, to assist him to select the most appropriate business formation based on hispresent situation.A. The THREE (3) types of business formations are Sole Proprietorship, Partnership, and aRegistered Company. Give him a detailed analysis of any TWO (2) types of businessformations by critiquing TWO(2) main characteristics of eachQuestion One Discuss the risk management process according to Harrington and Niehans (2003) Question Two Avoidance is a risk control technique that can be used to effectively in a risk management program, a) What is the major advantage of using this technique as a risk control measure 0 I Is it possible or practical for a firm to avoid all potential losses? Explain your answer Question Three Discuss the major type of pure risk which is associated with great financial risk Question Four Certain requirement ideally should be fulfilled before a pure risk can be privately insured. Explain the six requirement of an insurable risk Question Five Explain each of the following characteristics of a typical insurance plan. b) C) Pooling of losses Payment of fortuitous losses Risk transfer Indemnification