Physical Security Professional Certification Practice Exam

Which of the following is NOT a type of risk management?

1. Risk avoidance

2. Risk investigation

3. Risk reduction

4. Risk transfer

The correct answer is: Risk investigation

Risk management encompasses various strategies for handling potential threats and vulnerabilities to an entity's assets or activities. The primary types generally recognized include risk avoidance, risk reduction, and risk transfer. Risk avoidance involves eliminating the possibility of risk by choosing not to engage in a particular activity or by changing plans to sidestep potential problems. Risk reduction aims to lessen the impact or likelihood of risks, often through implementing safeguards and measures to minimize their potential effects. Risk transfer is the process of shifting the risk to another party, typically through insurance or contractual agreements where the risk responsibility is passed on. On the other hand, "risk investigation" is not commonly recognized as a fundamental approach to risk management. Instead, it may refer to the process of assessing and identifying risks rather than actively managing them. This distinction is crucial in understanding the framework of risk management and recognizing effective strategies that can be utilized to protect assets and ensure security.