MANAGEMENT

Detailed explanation-1: -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-2: -Risk Response: Leadership’s response or action towards the existence of a risk. There are different approaches, including: Avoidance-eliminate the conditions that allow the risk to exist. Reduction/mitigation-minimize the probability of the risk occurring and/or the likelihood that it will occur.

Detailed explanation-3: -To this extent, Risk Acceptance concerns the communication of residual risks to the decision makers. Once accepted, residual risks are considered as risks that the management of the organization knowingly takes. The level and extent of accepted risks comprise one of the major parameters of the Risk Management process.