In risk management, what is mitigation?

In risk management, what is mitigation?

• A. Acceptance of all risk
• B. Transferring risk to external party
• C. Ignoring potential risks
• D. Actions taken to reduce risk probability or impact

Answer: (D)

Mitigation in risk management means taking proactive steps to lessen either how likely a risk is to occur or how severe its consequences would be if it does happen. In practice, this involves implementing controls, safeguards, or procedures that reduce probability or limit impact. That aligns precisely with the description of actions taken to reduce risk probability or impact. Other options describe different risk responses—accepting risk, transferring risk, or ignoring risks—which do not involve actively reducing the risk itself.

Mitigation in risk management means taking proactive steps to lessen either how likely a risk is to occur or how severe its consequences would be if it does happen. In practice, this involves implementing controls, safeguards, or procedures that reduce probability or limit impact. That aligns precisely with the description of actions taken to reduce risk probability or impact. Other options describe different risk responses—accepting risk, transferring risk, or ignoring risks—which do not involve actively reducing the risk itself.