During an annual risk assessment, a mid-size manufacturing firm identifies a vulnerability in its legacy inventory system. If exploited, downtime could cost an estimated $15 000. Engineering estimates show that hardening the system and adding redundant capacity would cost $70 000 plus ongoing maintenance. After discussion, management chooses to leave the system unchanged. Which risk response strategy best describes this decision?
Risk acceptance is appropriate when management consciously acknowledges a threat but elects not to reduce its likelihood or impact because the cost of other responses-such as mitigation, transference, or avoidance-would exceed the potential loss. In this scenario, implementing controls would cost far more than the $15 000 estimated impact, so leaving the system as-is represents acceptance. Risk avoidance would eliminate the activity altogether, risk transfer would shift liability to a third party (for example, by purchasing insurance), and risk mitigation would add controls to lower probability or impact.
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ISC2 CISSP
Security and Risk Management
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