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How can a risk of a company be prevented is by taking an insurance policy.
Now, What is insurance?
Insurance is the agreement between two partners to undergo a certain agreement in case of any unfortunate circumstances. The first partner is called the insurance company(insurer) while the partner is called insured, which is the person taking the policy.
For a company to be prevented from risks it will has to take an insurance policy; for this risk occurring the insurance company will has to pay a certain sum of amount (called premium) to the company in other to cover half or almost the risk.
So, with this, the company will be prevented from risks of any nature.
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∙ 12y ago
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