A new risk is identified with very low probability but high impact; the owner decides not to redesign and the project proceeds. This is an example of:

A new risk is identified with very low probability but high impact; the owner decides not to redesign and the project proceeds. This is an example of:

• A. Mitigate
• B. Accept the risk
• C. Transfer the risk
• D. Avoid the risk

Answer: (B)

Acceptance of a risk occurs when no action is taken to alter the likelihood or impact of the risk, and the project proceeds with the risk acknowledged. In this scenario, the risk has a very low probability but high potential impact, and the owner chooses not to redesign or change the plan, continuing the project as is. That choice reflects accepting the risk, rather than trying to reduce it (mitigate), shift it to another party (transfer), or eliminate it by changing the project (avoid). The idea behind acceptance is that the cost or effort to address the risk isn’t justified, so the team proceeds with monitoring and potential contingency plans if the risk event occurs.

Acceptance of a risk occurs when no action is taken to alter the likelihood or impact of the risk, and the project proceeds with the risk acknowledged. In this scenario, the risk has a very low probability but high potential impact, and the owner chooses not to redesign or change the plan, continuing the project as is. That choice reflects accepting the risk, rather than trying to reduce it (mitigate), shift it to another party (transfer), or eliminate it by changing the project (avoid). The idea behind acceptance is that the cost or effort to address the risk isn’t justified, so the team proceeds with monitoring and potential contingency plans if the risk event occurs.