Question

KPL Inc is an outsource vendor. It handles the recruiting process for Numero Uno Computers. KPL recently changed its business strategy to a more profit-oriented one. This modification would require the company to charge more for its services This change will be a ________ risk for Numero Uno Computers.

A) de facto sole source
B) benefits outweighed by long-term costs
C) no easy exit
D) loss of control

Answer 1

Answer:

D. Loss of control

Explanation:

In risk management, loss of control refers methodology aimed at reducing the occurence and severity of a loss. In this situation, by KPL charging more, there would be a risk of losing control by the Uno Numero computers. It involves avoiding risks and if that isn't possible, mitigating to degree of loss.