Question

For risks that are low in severity and are infrequent, what is the best risk management technique?

1) Avoid the risk
2) Accept the risk
3) Transfer the risk
4) Mitigate the risk

Answer 1

The best technique for managing low-severity and infrequent risks is to accept the risk, where the cost of managing the risk is higher than the potential loss.The right answer is 2)

Step-by-step explanation:

For risks that are low in severity and are infrequent, the best risk management technique is typically to accept the risk. Accepting the risk means acknowledging it exists but determining that the cost of avoiding, transferring, or mitigating the risk outweighs the potential loss. This approach is taken when the consequences of the risk are minor enough that it is more economical and practical to deal with the risk if it occurs rather than investing resources in proactively managing it.