Actions to Mitigate Risk Exposure

C.

The correct answer is C. Risk response.

Risk response refers to the actions that are identified to bring a situation to a level where exposure to a risk is acceptable. Risk response is a critical aspect of risk management, which involves identifying, assessing, and mitigating potential risks to a project or organization.

Risk response is one of the key components of the risk management process. Once a risk has been identified and assessed, a risk response plan can be developed to mitigate or manage the risk. The risk response plan outlines the specific actions that will be taken to address the risk and minimize its impact on the project or organization.

There are several types of risk responses, including:

1. Avoidance: This involves taking steps to eliminate the risk altogether. For example, if a project involves working with a supplier who has a poor track record, the project team may choose to find a different supplier instead.

2. Mitigation: This involves taking steps to reduce the likelihood or impact of a risk. For example, if a project is at risk of running over budget, the project team may implement cost-saving measures to reduce expenses.

3. Transfer: This involves transferring the risk to another party, such as an insurance company. For example, if a project involves a significant financial risk, the project team may purchase insurance to protect against potential losses.

4. Acceptance: This involves accepting the risk and planning for its potential impact. For example, if a project involves a potential delay due to weather conditions, the project team may develop a contingency plan to account for the delay.

In summary, risk response refers to the specific actions that are identified to bring a situation to a level where exposure to a risk is acceptable. It is a critical aspect of the risk management process and involves developing a plan to mitigate or manage potential risks to a project or organization.