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Many companies self insure against some risk. Problems which can arise from self-insurance include:

A. confusion of business risks with insurable risks.

B. Both1) failure to reserve funds to handle worst case scenarios (low probability events) resulting in severe financial damage to the company, and2) confusion of business risks with insurable risks.

C. stiff competition from insurance companies

D. All of the other alternatives apply.

E. failure to reserve funds to handle worst case scenarios (low probability events) resulting in severe financial damage to the company

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Question added by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
Date Posted: 2017/01/13
Ahmed Hassan  Shaaban
by Ahmed Hassan Shaaban , Internal Audit Manager , EIPF (Egyptian Investor Protection Fund)

Answer: 

  • B. Both1) failure to reserve funds to handle worst case scenarios (low probability events) resulting in severe financial damage to the company, and2) confusion of business risks with insurable risks.

DR MD ANWAR HOSSAIN
by DR MD ANWAR HOSSAIN , Moderator , bayt.com

Thank you for invitation. I seem option B is good answer.

Mamoun elbaghir abdalla mhamad Eltayeb
by Mamoun elbaghir abdalla mhamad Eltayeb , Insurance agent / Producer , Albaraka Insurance Company

I agree the answers ( E )

Thanks               

Krishna   KHASANIS  PMP
by Krishna KHASANIS PMP , Project Manager-Electrical , Larsen & Toubro Ltd, P T & D (International)

I think answer is A and thanks for the invitation.

Muhammad Farooq
by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.

I think optionB is appropriate choice

Abdul Rehman
by Abdul Rehman , Electrical Engineer , Tamdeed Projects

Thank you for the invitation. My answer is E

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