Risk Response

Question 1

Risk Acceptance

Answer 1

To recognize the existence of risk and knowingly decide to allow it to exist without further mitigation.

Question 2

Risk Ignorance

Answer 2

Refers to both the failure to identify and acknowledge risk and the blind acceptance of risk without knowing or acknowledging what the risk level really is.

Question 3

Risk Mitigation

Answer 3

Refers to the actions that the organization takes in order to reduce risk. Mitigation is usually achieved via security controls that affect the impact or frequency of risk.

Question 4

Risk Transfer (Sharing)

Answer 4

Is a decision to reduce loss by having another organization incur the cost, i.e., purchasing insurance or partnerships.

Question 5

Risk Avoidance

Answer 5

Means exiting the activities that give rise to risk. Cost-benefit analysis shows that the cost to mitigate the risk exceeds the benefits achieved.