What is the recommended approach for control or mitigation in relation to risk?

The recommended approach for control or mitigation in relation to risk is to be proportional and reasonable in relation to the extent of the risk. This means that the measures taken to control or mitigate risk should correspond to the severity and likelihood of that risk occurring. By evaluating the potential impact of a risk, risk managers can implement appropriate strategies that achieve a balance between minimizing the risk and maintaining cost-effectiveness.

This approach encourages organizations to avoid overreacting to low-level risks with unnecessary expenditures, while also ensuring that significant risks receive adequate attention and resources to minimize their potential negative impact. It supports the principle of risk management, which emphasizes the need for effective, efficient, and justified responses to different risk levels.

Other approaches, such as being comprehensive regardless of risk cost, would lead to excessive expenditure on low-impact risks, straining resources without justifiable benefits. Similarly, a minimal approach might leave an organization vulnerable to significant risks, and a maximal focus solely on ensuring safety could lead to impractical and unsustainable measures. Thus, the second choice outlines a balanced, sensible framework for risk management that aligns with best practices in the field.