Which of the Following Statements About Approaches to Political Risk

Multiple Choice

Which of the following statements about approaches to political risk management is NOT true?

A) Passive political risk management discourages managers from fully or partially hedging their bets against exposure to political hazards.
B) Passive political risk management assumes that it is difficult, if not impossible, to systematically model political risk.
C) Active political risk management assumes that positive and negative political events in any country are neither independent nor random events.
D) Active political risk management assumes that political events unfold in observable patterns that statistical methods can detect.