Welcome to ExamTopics
ExamTopics Logo
- Expert Verified, Online, Free.
Mail Us[email protected]
Menu
Garp Discussions
exam questions

Exam SCR All Questions

View all questions & answers for the SCR exam
Go to Exam

Exam SCR topic 1 question 2 discussion

Actual exam question from GARP's SCR
Question #: 2
Topic #: 1
[All SCR Questions]

The risk team at an agricultural company in Easter Europe evaluates crop yield production performance. The evaluation reveals high temperature and water shortages will likely harm crop production, and current company insurance will not mitigate this exposure. The team recommends increasing coverage by purchasing an additional insurance policy that includes area yield protection.
According to the COSO ERM framework, which risk response strategy did the team recommend?

  • A. Pursuit
  • B. Sharing
  • C. Reduction
  • D. Acceptance
Show Suggested Answer Hide Answer
Suggested Answer: B 🗳️
by SolMak at April 19, 2023, 6:17 p.m.

Comments

Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.
Switch to a voting comment New
Submit Cancel
linaSCR
7 months, 1 week ago
Selected Answer: C
In a general manner, insurance is a risk mitigation, thus reduction (ex CDS in financial risk) So, I beleive C is the right answer
upvoted 1 times
...
huanle
1 year, 1 month ago
Selected Answer: B
C is not correct, although risk reduction is one of the risk responses, but reduction focuses on improvements on processes, systems, or strategies, as opposed to creating new opportunities.
upvoted 2 times
...
Gs2410
1 year, 2 months ago
Selected Answer: B
Insurance is Risk Sharing.
upvoted 2 times
...
Kezanne
1 year, 4 months ago
Insurance in itself is risk sharing. increasing the insurance to include yield protection is risk REDUCTION. Answer is C
upvoted 1 times
...
CecileC
1 year, 7 months ago
Selected Answer: B
From COSO's framework - "Sharing is a response that reduces the risk likelihood and impact by sharing a portion of the risk. An extremely common sharing response is insurance." So the answer should be B.
upvoted 1 times
...
SolMak
1 year, 7 months ago
Insurance is risk sharing
upvoted 1 times
...

Get IT Certification

Unlock free, top-quality video courses on ExamTopics with a simple registration. Elevate your learning journey with our expertly curated content. Register now to access a diverse range of educational resources designed for your success. Start learning today with ExamTopics!

Start Learning for free
Community vote distribution
A (35%)
C (25%)
B (20%)
Other
Most Voted
A voting comment increases the vote count for the chosen answer by one.

Upvoting a comment with a selected answer will also increase the vote count towards that answer by one. So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.

SaveCancel