Question

What are the four responses an organization can take toward a risk?

Answer 1

The four responses an organization can take toward a risk are: accept, avoid, transfer, and mitigate.

Step-by-step explanation:

The four responses an organization can take toward a risk are:

1. Accept the risk: This means that the organization acknowledges the risk and decides to proceed with the activity or project despite the potential negative consequences.
2. Avoid the risk: In this response, the organization takes steps to eliminate or avoid the risk altogether. They may decide not to engage in the activity or project that poses the risk.
3. Transfer the risk: This involves shifting the responsibility for the risk to another party, typically through insurance or contracts. The organization mitigates the risk by transferring it to someone else.
4. Mitigate the risk: This response involves taking actions to reduce the impact or likelihood of the risk. The organization implements measures to minimize the negative consequences of the risk.