Ace the 2025 Certified Governance Risk & Compliance (CGRC) Challenge – Navigate the Governance Maze with Confidence!

The choice of acceptance as the suitable risk response for managing both positive and negative risk events is based on the understanding that acceptance involves recognizing a risk and deciding to take no action against it. This approach can apply to both types of risks.

For negative risks, acceptance may be used when the potential impact is negligible or when the cost of mitigation exceeds the risk itself. In this case, the organization acknowledges the risk but chooses to monitor it rather than investing resources to eliminate it.

In the context of positive risks, acceptance can involve recognizing opportunities without taking proactive steps to capitalize on them. This may be appropriate if the effort to actively pursue the opportunity would not yield a sufficient return on investment or if it aligns with the organization's current strategy and capacity.

Each of the other options—mitigation, sharing, and transference—primarily focuses on negative risks. Mitigation involves taking action to reduce the likelihood or impact of a negative risk, which does not apply to positive risks. Sharing typically involves allowing another party to take on some risk in exchange for benefits, while transference involves shifting the risk entirely to a third party, neither of which is appropriate for handling positive risks.