Risk response

A choice in relation to an identified risk which can be categorised broadly as the decision whether to:

1. Avoid the risk, or
2. Accept it.

The broad choice to 'accept' a risk can be further classified according to whether the firm then retains, reduces or transfers the risk.

Using this model, the classes of potential risk responses are therefore four, namely:

1. Avoid
2. Accept and retain
3. Accept and reduce, or
4. Accept and transfer.

See also

• MCT
• Insurance
• Reduce
• Risk assessment
• Risk evaluation
• Risk identification
• Risk management
• Risk reporting
• Transfer
• Guide to risk management