What is risk acceptance?

• A. Eliminating risk.
• B. Transferring risk.
• C. Choosing to accept a residual risk after evaluating its impact and likelihood, with ongoing monitoring.
• D. Avoiding all risk.

Answer: (C)

Risk acceptance means consciously tolerating a certain level of risk after weighing how likely it is and how severe the impact could be. After applying any feasible controls, the remaining risk—residual risk—fits within what you’re willing to accept, so no further reduction is pursued. Instead, you monitor the risk over time to detect any changes and to respond if needed. This distinguishes it from trying to eliminate all risk, transferring the risk to someone else, or avoiding risk entirely, which aren’t practical in many scenarios.