How should a risk be HANDLED when the cost of the countermeasure OUTWEIGHS the cost of the risk?

The correct answer is C. Accept the risk. When the cost to implement a countermeasure exceeds the potential loss from the risk itself, the economically rational decision is to accept the risk. Spending more to protect an asset than the asset is worth is not justified. Risk acceptance means acknowledging the risk exists…

Submitted by stefanr· Apr 18, 2026Risk Identification, Monitoring and Analysis

Question

Options

AReject the risk
BPerform another risk analysis
CAccept the risk
DReduce the risk

How the community answered

(49 responses)

A
2% (1)
C
96% (47)
D
2% (1)

Explanation

When the cost to implement a countermeasure exceeds the potential loss from the risk itself, the economically rational decision is to accept the risk. Spending more to protect an asset than the asset is worth is not justified. Risk acceptance means acknowledging the risk exists and consciously deciding to live with it because mitigation is not cost-effective. 'Reject the risk' is not a valid risk response strategy. Performing another analysis does not change the economics. Reducing the risk would still involve spending money on countermeasures, which in this scenario is not warranted.

Topics

#Risk Management#Risk Response#Risk Acceptance#Cost-Benefit Analysis

Community Discussion

No community discussion yet for this question.

Full SSCP Practice