(ISC)2 Certified in Cybersecurity Practice Exam

Which term best describes the acceptance of potential benefits outweighing risk impact when performing a business function?

1. Risk Mitigation

2. Risk Management

3. Risk Avoidance

4. Risk Acceptance

The correct answer is: Risk Acceptance

The term that best describes the acceptance of potential benefits outweighing risk impact when performing a business function is risk acceptance. This concept acknowledges that while there are inherent risks associated with certain activities, the potential benefits are deemed significant enough to justify proceeding with those activities. Organizations often engage in risk acceptance when they analyze factors such as cost versus benefit, where they determine that the risk is manageable and the possible advantages are crucial for achieving their business objectives. In risk acceptance, the organization consciously decides to take on a specific risk, recognizing both the potential for impact and the likelihood of occurrence. This is a vital aspect of decision-making in any business, as it reflects a balanced approach to risk, allowing entities to pursue opportunities while still being aware of the associated challenges. The other options represent different strategies for dealing with risk. Risk mitigation involves taking steps to reduce the likelihood or impact of risks. Risk management is a broader term that encompasses identifying, assessing, and responding to risks. Risk avoidance is the strategy of eliminating any activities that could lead to risk exposure. Each of these terms serves its own purpose in a comprehensive risk strategy, but none align specifically with the notion of accepting a risk in light of its benefits the way risk acceptance does.