What are the four risk response categories? Include a definition of each
What will be an ideal response?
Answer: Avoidance. This risk response involves avoiding or exiting the activities that give rise to the risk. For example, given the risk of changing consumer behavior adversely affecting product sales, the entity may choose to exit the product line by selling it.
Reduction. This risk response refers to actions taken to reduce risk likelihood, risk impact, or both. For example, an organization that could not afford a comprehensive security system might instead install firewalls to reduce the risk likelihood that a hacker will be able to access the enterprise database.
Sharing. An entity reduces risk likelihood or risk impact by sharing the risk with another entity. For example, if you purchase car insurance, you are sharing risk with the auto insurance company.
Acceptance. When an entity responds to risk with acceptance, the entity takes no action to affect risk likelihood or risk impact.
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There are more than 50 blueberry farmers in Shammonton, New Jersey, that grow, package, and distribute the same quality blueberries
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