Natural disaster is BEST associated to which of the following types of risk?
A.
Short-term
B.
Long-term
C.
Discontinuous
D.
Large impact
Explanation:
Natural disaster can be a long-term or short-term and can have large or small impact on the
company. However, as the natural disasters are unpredictable and infrequent, they are best
considered as discontinuous.
Answer A is incorrect. Natural disaster can be a short-term, but it is not the best answer.
Answer B is incorrect. Natural disaster can be a long-term, but it is not the best answer.
Answer D is incorrect. Natural disaster can be of large impact depending upon its nature, but it is
not the best answer.