Final answer:
In risk management, when the severity of risk is high and the frequency of the risk event occurring is high, the appropriate action is to mitigate the risk.
Step-by-step explanation:
In risk management, when the severity of risk is high and the frequency of the risk event occurring is high, the appropriate action is to mitigate the risk. This means taking steps to reduce the impact and likelihood of the risk event. By implementing measures to address and minimize the risk, the potential harm and consequences can be significantly reduced.
For example, let's consider a situation where there is a high risk of a cyber attack on a company's database system. The severity of this risk is high as it can lead to data breaches, financial losses, and damage to the company's reputation. Additionally, the frequency of cyber attacks is high as they occur frequently in the business environment.
To mitigate this risk, the company can employ security measures such as firewall protection, regular software updates, employee training on cybersecurity practices, and implementing backup systems. These actions reduce the likelihood of a successful cyber attack and minimize the potential impact if an attack does occur.
Therefore, in cases where the severity and frequency of a risk are high, the most appropriate action is to mitigate the risk to protect against potential harm and ensure business continuity.