Which risk mitigation strategy combines aspects of risk acceptance and risk avoidance?

• A. Risk Acceptance
• B. Risk Limitation
• C. Risk Transference
• D. Risk Avoidance

Answer: (B)

Risk limitation is about reducing exposure to a manageable level while acknowledging some residual risk will remain. You put in controls to limit both the likelihood and impact of a risk, bringing it down to an acceptable level, but you don’t pretend it can be eliminated entirely. That blend—mitigating and constraining risk while accepting that a small amount persists—is why this option fits best.

In contrast, risk acceptance means taking no additional action beyond acknowledging the risk; risk transference shifts the risk to another party (like insurance); and risk avoidance means eliminating the activity entirely to remove the risk. None of those combine both accepting residual risk and actively limiting exposure in the way risk limitation does.