Certified Supply Chain Professional (CSCP) Practice Exam

What does the 'accept' risk response entail?

1. Implementing changes to avoid the risk

2. Documenting the risk and deciding to live with it

3. Shifting the risk burden to another party

4. Reducing the likelihood of the risk occurring

The correct answer is: Documenting the risk and deciding to live with it

The 'accept' risk response involves recognizing a risk and making a conscious decision to endure its potential impacts without implementing any particular measures to alter the risk's occurrence or consequences. This approach is often taken when the costs of other risk management strategies outweigh the potential negative outcomes if the risk were to materialize. By documenting the risk and deciding to live with it, organizations acknowledge the presence of the risk but determine that they are willing to tolerate it based on their risk appetite or the insignificance of its potential impact. This strategy is particularly common for minor risks where the likelihood and impact are low, making active management unnecessary. In contrast, the other options involve proactive measures to deal with risks, such as avoiding, transferring, or mitigating them, which do not align with the 'accept' strategy. Each of these alternatives requires additional resource allocation or changes to processes, which is not part of the acceptance approach.