The process of reducing the probability or impact of a risk is called:

The process of reducing the probability or impact of a risk is called:

• A. Risk criteria
• B. Risk appetite
• C. Risk reduction
• D. Risk analysis

Answer: (C)

In risk management, reducing the probability or impact of a risk is called risk reduction. This reflects taking actions to lower either how likely a risk is to occur or how severe its consequences would be if it does occur. For example, adding physical security controls reduces the chance of theft, while implementing backups and redundancy lowers the potential impact of system failures. The other terms refer to different aspects: risk criteria are the standards used to judge risk levels, risk appetite is how much risk an organization is willing to tolerate, and risk analysis is the process of evaluating risks to determine their magnitude.

In risk management, reducing the probability or impact of a risk is called risk reduction. This reflects taking actions to lower either how likely a risk is to occur or how severe its consequences would be if it does occur. For example, adding physical security controls reduces the chance of theft, while implementing backups and redundancy lowers the potential impact of system failures. The other terms refer to different aspects: risk criteria are the standards used to judge risk levels, risk appetite is how much risk an organization is willing to tolerate, and risk analysis is the process of evaluating risks to determine their magnitude.