A company planning to minimize the impact of risk is engaging in what strategy?

A company planning to minimize the impact of risk is engaging in what strategy?
A . Risk acceptance
B . Risk avoidance
C . Risk transfer
D . Risk mitigation

View Answer

Answer: D

Explanation:

Very Short Explanation According to the CTSC Exam Content Manual1, risk mitigation is one of the four main risk response strategies, along with risk acceptance, risk avoidance, and risk transfer. Risk mitigation aims to reduce the probability and/or impact of a risk by implementing actions such as contingency planning, alternative sourcing, quality improvement, etc. Risk mitigation is different from risk acceptance, which means accepting the consequences of a risk without taking any action; risk avoidance, which means eliminating the risk by changing the plan or scope; and risk transfer, which means shifting the risk to a third party such as a supplier, insurer, or partner.

1: https://www.ascm.org/ctsc-ecm/