What can Risk Management invoke in the event of a catastrophe?

The correct answer highlights that in the event of a catastrophe, risk management may invoke a moratorium on new business. This strategy allows an organization to avoid taking on new risks during a time when existing risks are heightened due to the catastrophe. Implementing a moratorium ensures that the focus remains on managing and servicing current policies and claims, rather than expanding exposure to additional risks that could further complicate the situation.

Establishing a moratorium can help stabilize operations and resources, allowing the company to respond effectively to the immediate challenges posed by the catastrophe. By pausing new business, the company can also manage its financial liabilities and resources more effectively, ensuring that existing clients receive the attention and support they need during a crisis.

Other options may suggest actions like reviewing policies or freezing claims, but these do not directly address the need to halt new business, which is a critical step to ensure operational focus and stability in high-risk situations.