Certified Governance Risk and Compliance (CGRC) Practice Exam 2025 – All-in-One Guide to Master Your Certification!

The action that involves reducing the probability or impact of a risk is mitigation. Mitigation strategies are designed to lower the chances of a risk occurring and to minimize the negative consequences if it does occur. This can be achieved through various measures, such as implementing new policies, providing training, enhancing security protocols, or adopting technologies that lessen vulnerability.

Transference refers to shifting the risk to another party, such as outsourcing or purchasing insurance, but it does not reduce the actual risk faced by the organization. Avoidance involves changing plans to eliminate the risk entirely, which does not address existing risks but rather sidesteps them. Acceptance means understanding and acknowledging the risk without taking any specific action to mitigate it, which leaves the risk unchanged. Mitigation, therefore, is specifically focused on actively reducing risk levels, making it the most appropriate choice in the context of risk management.