MANAGEMENT

Detailed explanation-1: -Risk acceptance is a risk response strategy whereby the project team decides to acknowledge the risk and not take any action unless the risk occurs.

Detailed explanation-2: -Transfer – shifts the impact of the threat to as third party, together with ownership of the response. An example of this is insurance. Mitigate – act to reduce the probability of occurrence or the impact of the risk.

Detailed explanation-3: -Since project managers and risk practitioners are used to the four common risk response strategies (for threats) of avoid, transfer, mitigate and accept, it seems sensible to build on these as a foundation for developing strategies appropriate for responding to identified opportunities.

Detailed explanation-4: -The following are strategies for handling negative risks or threats: avoid, transfer, mitigate, or accept.

Detailed explanation-5: -Accept. This risk response strategy can be used with both kinds of risks, i.e. either positive risks or negative risks. Here, you don’t take any action to manage the risk but you do acknowledge it. You can accept the risk either by actively acknowledging it or passively acknowledging it.