A shipping company investing to reduce damages due to weather conditions is an example of:
A shipping company investing to reduce damages due to weather conditions is an example of:
When a shipping company invests to reduce damages due to weather conditions, it is taking steps to prevent or lessen the impact of potential risks. This process is known as risk mitigation. Risk mitigation involves the implementation of measures to minimize the negative effects of risks, such as purchasing weather-resistant materials or improving routing strategies to avoid adverse weather conditions.
Correct answer is C
Risk mitigation is the process of taking steps to reduce the likelihood or impact of a risk occurring. In this case, the shipping company is investing in measures to reduce the impact of weather conditions on its cargo, such as using weather-resistant containers or rerouting shipments around areas with severe weather.
C. Risk mitigation.
Risk mitigation involves taking measures to reduce the probability and/or impact of a risk. When a shipping company invests to reduce damage caused by weather conditions, it is adopting a risk mitigation strategy. It is identifying a potential risk (damage due to weather conditions) and then taking specific actions to reduce the likelihood or impact of that risk (through investments in equipment, training, technology, etc.). Therefore, this action is an example of risk mitigation.