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This question belongs to Commerce Insurance
Insurance
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Cost of the risk is product of which of the following 2 factors:

Answer & Solution
Correct Answer: Option D
Cost of the risk is product of Probability and impact. This means that the total amount of risk exposure is the probability of an unfortunate event occurring, multiplied by the potential impact or damage incurred by the event. If you put a dollar value on the impact, then you can value the risk and in a simple way compare one risk factor to another.
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