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To respond to the risk that system operations staff fails to execute a daily backup, IT management now requires that systems adminstrators sign off when the daily backup is completed. This is an instance of risk:
Acceptance.
Mitigation.
Avoidance.
Transfer.
Risk mitigation is the strategy that provides for the definition and implementation of controls to address the risk described. Risk avoidance is a strategy that provides for not implementing certain activities or processes that would incur risk. Risk transfer is the strategy that provides for sharing risk with partners or taking insurance coverage. Risk acceptance is a strategy that provides for formal acknowledgment of the existence of a risk and the monitoring of that risk.
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