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

Question: 1 / 400

In risk management, what does the term 'mitigation' refer to?

The identification of potential risks.

The actions taken to reduce the impact or likelihood of risks.

Mitigation in risk management refers to the actions taken to reduce the impact or likelihood of risks. This concept is fundamental as it embodies a proactive approach to managing potential threats, rather than merely identifying them or attempting to eliminate them entirely. Effective mitigation strategies can include measures such as implementing safety protocols, conducting training, developing contingency plans, and improving system controls.

Choosing to focus on mitigation emphasizes the importance of mitigating risk exposure in a practical manner. While it is not always possible to completely eliminate risks, organizations strive to minimize their impact or likelihood through various strategic efforts, making mitigation an essential component of any comprehensive risk management framework.

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The total elimination of risks.

The transfer of risk to another entity.

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