Multiple Select QuestionSelect all that applyWhat characteristics of a risk event may make "accepting the risk" an appropriate strategy?Multiple select question.The risk is unknown.Extremely low probability of occurrence.Low cost impact.
Question
Multiple Select QuestionSelect all that applyWhat characteristics of a risk event may make "accepting the risk" an appropriate strategy?Multiple select question.The risk is unknown.Extremely low probability of occurrence.Low cost impact.
Solution
The appropriate strategy of "accepting the risk" may be applicable if the risk event has the following characteristics:
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Extremely low probability of occurrence: If the risk event is very unlikely to happen, it might be more cost-effective and efficient to accept the risk rather than investing resources in trying to prevent it.
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Low cost impact: If the potential damage or loss caused by the risk event is minimal, it might be more reasonable to accept the risk. The cost of trying to mitigate or avoid the risk could be higher than the cost of the risk event itself.
The risk being unknown is not a valid reason to accept the risk. In fact, unknown risks can often be the most dangerous as they are difficult to predict and prepare for. Therefore, the correct answers are "Extremely low probability of occurrence" and "Low cost impact".
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