Acceptance Risk (Strategy) - Explained
What is Acceptance Risk?
Written by Jason Gordon
Updated at March 10th, 2022
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What is Acceptance Risk?
The major goal of risk management is to identify and analyze risks and devise means to combat the risk. A risk can be accepted, transferred, avoided, minimized, and retained. Acceptance risk is an organizational risk that is identified, and the organization sees no need to spend money and time reducing the risk because its impact is bearable.
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Aside from using acceptance risk as a form of risk management, there are other approaches. Below are other strategies that can be used for risk management;
- Risk Transfer: this is also known as risk sharing. This technique is used when several parties are involved in a project, they can transfer of shares the risks among themselves.
- Risk Avoidance: This is a strategy of eliminating all risks that can have impacts on a business or project.
- Risk Mitigation: This entails minimizing or reducing the impacts of risk.
- Risk Exploitation: This is a strategy used when a risk signals a positive effect. For instance, a popular product but with less staff can exploit a risk by bringing additional staff.