Final answer:
Realizing that some risks are unavoidable and making sure contingency plans are in place is known as Risk acceptance. It is a strategy where an organization acknowledges and prepares for the impact of risks, as opposed to trying to avoid or transfer them.
Step-by-step explanation:
Realizing that some risks are unavoidable and making sure there are contingency plans in place is an example of Risk acceptance. This organizational response to risk involves acknowledging that certain risks cannot be completely eliminated. Instead of trying to avoid these risks, an organization will accept them and prepare contingency plans to manage their impact. This is different from risk deferral, risk transfer, or risk avoidance, which involve postponing, sharing, or trying to eliminate risks, respectively.