Question

What sparked the movement towards alternative risk solutions?

a.

Corporate customers' need to maximize return on shareholder funds

b.

Increased understanding and grasp of risk financing techniques

c.

The evaluation of total cost of risk financing

d.

The inclusion of uninsurable risks with alternative risk techniques

Answer: (b).Increased understanding and grasp of risk financing techniques Explanation:The movement towards alternative risk solutions was sparked by corporate customers who developed a greater understanding and grasp of risk financing techniques as a corporate strategy. As they became more sophisticated in using capital markets, their need to maximize return on shareholder funds and evaluate the total cost of risk financing led them to explore alternative approaches beyond traditional insurance.

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Q. What sparked the movement towards alternative risk solutions?

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