Which term describes making the decision to accept the risk and not take further action to mitigate it?

Which term describes making the decision to accept the risk and not take further action to mitigate it?

• A. Risk Acceptance
• B. Risk Mitigation
• C. Risk Transfer
• D. Risk Avoidance

Answer: (A)

Risk acceptance is choosing to acknowledge a risk and not take further steps to reduce it, because its potential impact is deemed acceptable or the cost of mitigation isn’t justified. After weighing how likely the event is and how bad it would be, an organization may decide that staying with the current controls (or none) and monitoring the risk is sufficient within their tolerance. This differs from mitigation, which aims to reduce either the likelihood or the impact; transfer, which shifts the risk to another party through methods like insurance or outsourcing; and avoidance, which removes the activity that creates the risk entirely.

Risk acceptance is choosing to acknowledge a risk and not take further steps to reduce it, because its potential impact is deemed acceptable or the cost of mitigation isn’t justified. After weighing how likely the event is and how bad it would be, an organization may decide that staying with the current controls (or none) and monitoring the risk is sufficient within their tolerance. This differs from mitigation, which aims to reduce either the likelihood or the impact; transfer, which shifts the risk to another party through methods like insurance or outsourcing; and avoidance, which removes the activity that creates the risk entirely.