Which of the following is not a way to manage risk?

The correct answer is D. Enveloping. The four universally recognized risk management strategies are: Accept (tolerate the risk), Transfer (shift it to a third party, e.g., insurance), Mitigate (reduce the likelihood or impact), and Avoid (eliminate the activity that creates the risk). 'Enveloping' is not a recognize

Submitted by layla.eg· Apr 18, 2026Legal, Risk and Compliance

Question

Options

ATransferring
BAccepting
CMitigating
DEnveloping

How the community answered

(45 responses)

A
2% (1)
B
7% (3)
C
2% (1)
D
89% (40)

Explanation

The four universally recognized risk management strategies are: Accept (tolerate the risk), Transfer (shift it to a third party, e.g., insurance), Mitigate (reduce the likelihood or impact), and Avoid (eliminate the activity that creates the risk). 'Enveloping' is not a recognized risk management strategy - it is a term associated with data encapsulation protocols (e.g., SOAP envelopes), not risk management frameworks.

Topics

#Risk Management#Risk Response Strategies#Risk Treatment

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