Out of several risk responses, which of the following risk responses is used for negative risk
events?
A.
Share
B.
Enhance
C.
Exploit
D.
Accept
Explanation:
Among the given choices only Acceptance response is used for negative risk events. Risk
acceptance means that no action is taken relative to a particular risk; loss is accepted if it occurs.
If an enterprise adopts a risk acceptance, it should carefully consider who can accept the risk. Risk
should be accepted only by senior management in relationship with senior management and the
board. There are two alternatives to the acceptance strategy, passive and active.
Passive acceptance means that enterprise has made no plan to avoid or mitigate the risk but
willing to accept the consequences of the risk.
Active acceptance is the second strategy and might include developing contingency plans and
reserves to deal with risks.
and not with negative risks.