When responding to risk, what are the four broad options an organization can select from?

The correct answer highlights the four broad options available to organizations when responding to risk, which are eliminate, control, transfer, and retain.

Eliminating risk involves taking steps to completely remove the potential threat, thereby negating any chance of loss or disruption. Control refers to implementing measures that reduce the impact or likelihood of the risk occurring. Transferring risk typically involves shifting the financial consequences of the risk to another party, often through insurance or outsourcing. Retaining risk means acknowledging the risk and deciding to accept its potential consequences, which may be appropriate for risks that have a low probability of occurrence or impact.

In contrast, the other options do not accurately encapsulate the recognized strategies for risk response. For instance, simply accepting or ignoring a risk doesn't provide a proactive framework for dealing with inherent threats in an organization's operations. Additionally, the options outlined in the remaining choices focus more on analysis, planning, and administrative tasks, rather than concrete strategies for dealing directly with risks. Understanding the correct set of options allows organizations to develop effective risk management strategies that align with their overall business objectives.