Which risk-management option named in the material means deciding to retain an exposure rather than avoid or transfer it?

### Why this is right Risk acceptance means choosing to retain an exposure and bear its consequences rather than selecting a different response. The material names acceptance, avoidance, and transfer as risk-management options, making acceptance the direct match. ### The concept A **risk-management option** is a way of responding to an exposure after considering it. With acceptance, the decision-maker keeps the exposure and remains responsible for resulting losses. With avoidance, the decision-maker stops or does not undertake the activity that creates the exposure. With transfer, another party takes on some agreed financial responsibility for the consequences. These are different choices, not different names for assessing how likely or severe a loss may be. The source names the options but does not set out detailed rules for when to select each one. ### The other options - **B. Risk avoidance**: This means removing or not undertaking the activity that creates the exposure, rather than retaining it. - **C. Risk transfer**: This shifts some agreed financial consequences to another party; it is not the same as retaining the exposure. - **D. Risk classification**: This means grouping risks, not deciding how to respond to one. ### Terms - **Exposure**: A situation or activity that could lead to a loss. - **Risk acceptance**: A decision to retain an exposure and bear its consequences. ### Remember Acceptance retains the risk; avoidance removes the activity; transfer shifts agreed consequences.