Risk Responses for Positive and Negative Events

A.

The seven risk responses are as follows:

1. Acceptance - accepting the risk and not taking any action to address it
2. Avoidance - taking actions to eliminate the risk entirely
3. Mitigation - taking actions to reduce the impact or probability of the risk
4. Transference - transferring the risk to another party (e.g., through insurance)
5. Sharing - sharing the risk with another party (e.g., through a partnership or contract)
6. Exploiting - taking actions to maximize the positive impact of an opportunity
7. Enhancing - taking actions to increase the probability or impact of a positive event

Of these options, the risk response that is appropriate for both positive and negative risk events is Acceptance (option A). Acceptance is appropriate for both positive and negative events because it involves acknowledging the risk and making a conscious decision not to take action to address it.

In the case of a negative risk event, accepting the risk may be appropriate if the cost or effort required to mitigate or avoid the risk is greater than the potential impact of the risk. In the case of a positive risk event, accepting the risk may be appropriate if the potential benefit of exploiting or enhancing the opportunity is not worth the cost or effort required to do so.

Mitigation (option B), sharing (option C), and transference (option D) are all appropriate for negative risk events, as they involve taking action to address the risk or transfer it to another party. Exploiting (option F) and enhancing (option G) are appropriate for positive risk events, as they involve taking action to maximize the potential benefit of the opportunity.