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I need somebody who can answer this question in your own word please thank you My...

I need somebody who can answer this question in your own word please thank you

My class is Economics for Healthcare Managers

Risk sharing and diversification are the only two strategies for managing risk." What can you say about them?

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Answer #1

Personally speaking, I do not agree with the statement that ‘Risk sharing and diversification are the only two strategies for managing risk’. Diversifying risk is one of the types of risk sharing. However, there are many other strategies too to manage risk. Other strategies that can be used to mitigate and manage risk are accepting the risk, avoiding the risk and exploiting the risk as a resource or opportunity. Accepting risk is to accept the risk that has happened and manage the crisis accordingly. Avoiding risk refers to avoiding the risk that we know would happen if a particular task/activity is done. Exploiting the risk refers to converting the risk into an opportunity for growth.

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