The best mix of approaches to risk management is rooted in cost-benefit analysis.

Question

Quizplus · Accepted Answer

Cost-benefit analysis enables organizations to weigh the potential impacts of risks against the cost of mitigation strategies. This approach allows organizations to make informed decisions about whether to accept, transfer, mitigate, or avoid a risk, based on whether the benefits of a particular strategy justify its costs. Therefore, cost-benefit analysis is a critical aspect of effective risk management.

The Best Mix of Approaches to Risk Management Is Rooted