A choice in relation to an identified risk which can be categorised broadly as the decision whether to:
- Avoid the risk, or
- Accept it in whole or in part.
The broad choice to 'accept' a risk can be further classified according to whether the organisation then retains, reduces or transfers the risk.
Using this model, the classes of potential risk responses are therefore four, namely:
- Accept and retain
- Accept and reduce, or
- Accept and transfer.