Which of the following describes an appropriate scenario for applying Risk Acceptance in risk management?

Risk Acceptance is a strategy used in risk management when an organization decides to accept the consequences of a particular risk rather than implementing measures to mitigate or eliminate it. This approach is often taken when the cost of mitigating the risk is higher than the potential loss associated with the risk itself.

In the context provided, accepting the risk when the cost of mitigation exceeds the risk reflects a practical and economic consideration. Organizations operate within budget constraints and have to make decisions based on cost-effectiveness. If the expense of mitigating the risk would be greater than the potential impact of the risk happening, it is reasonable for organizations to choose to accept the risk. This means they acknowledge the risk exists but decide to continue operating with that risk without implementing extensive mitigation measures.

The other options do not align with the principles of risk acceptance. For instance, completely eliminating a risk is not a scenario for risk acceptance, as this implies the risk is not being acknowledged or dealt with at all. Similarly, partial controls suggest that some form of mitigation is being undertaken, which doesn’t fit within a risk acceptance framework. Assessing a risk at a low level might lead to monitoring or mitigating the risk rather than full acceptance, depending on the context and the organization’s risk tolerance. Therefore, the scenario described