Which of the following is not one of the five avenues for addressing risks?

• A. Risk avoidance
• B. Risk transfer
• C. Risk spreading
• D. Risk denial

Answer: (D)

Addressing risk with a formal approach relies on five main strategies: eliminating the exposure by avoiding the risk, transferring the risk to another party (such as through insurance or contracts), reducing the risk by implementing controls to lower the likelihood or impact, accepting the risk when mitigation isn’t cost-effective, and spreading or sharing the risk across multiple assets or locations to lessen potential damage. Denial isn’t a recognized risk-response strategy because it doesn’t change the probability or consequences of the risk and leaves the exposure unmanaged. The other options fit within these accepted avenues, with spreading capturing the idea of distributing risk and avoidance and transfer clearly matching the established methods.