Which strategy describes the process of reducing risk to an acceptable level?

The concept of reducing risk to an acceptable level is best encapsulated by risk mitigation. This strategy involves taking proactive steps to minimize the likelihood or impact of potential threats or vulnerabilities. Through risk mitigation, organizations identify their risks and implement measures such as controls, policies, and procedures to reduce the likelihood of occurrence or lessen the impact if such risks do happen.

In practice, risk mitigation can include a variety of approaches such as enhancing security measures, implementing employee training programs, or adopting technology solutions that fortify defenses against identified threats. By doing so, organizations aim to achieve a balance whereby the risks they face are sufficiently managed to align with their risk appetite or tolerance, facilitating safer operations and decision-making.

This approach contrasts with risk avoidance, which seeks to eliminate all potential risk by modifying or discontinuing certain activities, which is not always feasible or practical. Risk transfer, on the other hand, involves shifting the risk to another party, such as through insurance, rather than addressing it directly. Lastly, risk acceptance is the decision to acknowledge and take on the risk without taking action to mitigate it, which does not align with the goal of reducing risk to an acceptable level.