Define risk reduction and highlight the significance of Total Disaster

Question

Define risk reduction and highlight the significance of Total Disaster Risk Management Approach (TDRM).

14 Sep 2022

Answer :

Word Count : 319

Risk Reduction

On the other hand, risk reduction deals with mitigating potential losses through more of a staggered approach. For example, suppose an investor already owns oil stocks. The two factors discussed earlier are still relevant: there is political risk associated with the production of oil, and oil stocks often have a high level of unsystematic risk. As opposed to a risk avoidance strategy, this investor can reduce risk by diversifying their portfolio by keeping their oil stocks while ________ _______ ______ ______ _______.
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