Question

Another term for risk mitigation is:

A. risk reduction
B. risk assessment
C. risk management
D. risk evaluation

Answer 1

Risk mitigation is synonymous with risk reduction, which refers to actions taken to lessen the likelihood and impact of potential risks.

Step-by-step explanation:

The term risk mitigation is synonymous with option A, risk reduction. Risk mitigation involves strategies and actions aimed at reducing the likelihood and/or the impact of adverse events associated with various risks. While risk assessment and risk evaluation pertain to identifying and evaluating risks, and risk management encompasses the broader process that includes the identification, analysis, and response to risk factors, risk mitigation specifically focuses on the steps taken to reduce risk.

Answer 2

Another term for risk mitigation is risk reduction, which involves strategies to lower the potential impact of risks. It is part of the broader risk management framework, which also includes risk assessment and risk evaluation as components for handling risks in an organization. Thus, the correct option is C.

Step-by-step explanation:

The term for risk mitigation is also known as risk reduction. Risk mitigation or risk reduction involves strategies and techniques that are applied to decrease the likelihood and/or impact of harmful events, known as risks, to manageable levels. It is a subpart of the larger risk management process, which encompasses identifying, assessing, and controlling risks to an organization's capital and earnings.

Risk assessment and risk evaluation are steps within the risk management framework. Risk assessment involves identifying and analyzing risks, while risk evaluation is about comparing the estimated risks against benchmarks or risk criteria to determine their significance.