During a risk assessment, it was discovered the location where the company would like to build a data center in subject to a large number of hurricanes. Management decided to build the data center to withstand category 5 hurricanes. This is an example of:
A) Risk Mitigation
B) Risk Acceptance
C) Risk Transfer
D) Risk Avoidance
Answer:
The correct choice is definitely A) Risk Mitigation
Step-by-step explanation:
It is ideal for a business to completely proper for a risk or threat and avoid it completely.
However, in real world scenarios, there will always be some degree of risk to be expected regardless of how much preparation and preventive measures that are put in place.
These preventive measure are referred to as Risk Mitigation.
Having a risk mitigation plan can help an business prepare for the worst scenarios, anticipating that some degree of damage may occur and having systems and procedures in place to manage such.
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