In addressing an identified risk, which strategy aims to decrease the risk by taking measures to reduce vulnerability?
- Risk sharing
- Risk retention
- Risk reduction
- Risk avoidance
Explanation: There are four potential strategies for responding to risks that have been identified:
- Risk avoidance - Stop performing the activities that create risk.
- Risk reduction - Decrease the risk by taking measures to reduce vulnerability.
- Risk sharing - Shift some of the risk to other parties.
- Risk retention - Accept the risk and its consequences.
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