easy
Single Answer
0Fotis is a risk manager with a large-scale enterprise. The firm recently evaluated the risk of California mudslides on its operations in the region and determined that the cost of responding outweighed the benefits of any controls it could implement. The company chose to take no action at this time. What risk management strategy did Fotis's organization pursue?
Answer Options
A
Risk avoidance
B
Risk mitigation
C
Risk transference
D
Risk acceptance
Correct Answer: D
Explanation
In a risk acceptance strategy, the organization decides that taking no action is the most beneficial route to managing a risk.