What is a typical approach for managing high frequency and high impact risks?

A typical approach for managing high frequency and high impact risks encompasses both managing strategies and insurance solutions, which is accurately reflected in the chosen answer. This dual approach allows organizations to mitigate risks through effective management practices while also transferring some of the financial burden associated with those risks via insurance.

Managing high frequency and high impact risks involves implementing strategies that can reduce the likelihood of an event occurring or lessen its impact. This could include safety protocols, training, disaster recovery plans, or other risk management techniques. However, even with the best preventative measures, some risks can still materialize, leading to significant financial consequences.

On the insurance side, securing coverage allows organizations to protect their financial interests against these risks. This means that if a high-impact event does occur, they have financial support to recover and mitigate losses.

Therefore, the combination of managing risks through prevention and control measures while also utilizing insurance ensures that an entity is well-prepared to handle potential challenges effectively.