What are the five distinct avenues for addressing identified risks to assets?

• A. Risk avoidance, risk transfer, risk spreading, risk reduction, and risk acceptance.
• B. Risk denial, risk transfer, risk sharing, risk budgeting, and risk acceptance.
• C. Risk avoidance, risk transfer, risk spreading, risk reduction, risk acceptance.
• D. Risk avoidance, risk transfer, risk spreading, risk mitigation, risk acceptance.

Answer: (C)

When addressing identified risks to assets, you have five treatment approaches: avoid the risk, transfer it to someone else, spread or diversify the risk, reduce the impact or likelihood, and accept the risk when it’s within tolerance. The correct option lists these five in their standard terms: avoidance, transfer, spreading (diversification), reduction, and acceptance. This set precisely covers the common ways to handle risk in asset protection, ensuring all angles are addressed. The other options mix in terms that aren’t recognized risk treatment choices in this framework—such as denial or budgeting—and substitute different wording like mitigation for reduction, which aren’t aligned with the canonical five avenues.