Question

Which phase of risk management is the process of weighing the severity of a risk against the cost and effort it would take to minimize a risk?

a. risk assessment
b. risk identification
c. risk control
d. risk mitigation

Answer 1

Risk mitigation (option d) involves weighing the severity of a risk against the cost and effort to minimize it.

Step-by-step explanation:

The correct answer is d. risk mitigation. Risk mitigation is the phase of risk management where the severity of a risk is weighed against the cost and effort required to minimize that risk. It involves implementing strategies and measures to reduce the impact or likelihood of a risk event.

For example, let's say a company identifies a risk of a cybersecurity breach that could result in financial loss and reputational damage. During the risk mitigation phase, they would assess the severity of the risk and determine the resources needed to implement security measures such as firewalls, encryption, and employee training.