In the context of risk management, what is a mitigation strategy?

A mitigation strategy refers to the means by which an organization addresses and reduces unacceptable risks. In risk management, the goal is not to eliminate all risks, as that is often impractical, but rather to identify potential risks and reduce their impact or likelihood to an acceptable level.

By implementing a mitigation strategy, organizations can proactively manage risks by developing specific plans and actions designed to minimize the potential negative impacts associated with those risks. This could include measures such as implementing controls, undergoing training, or adopting new technologies, all aimed at ensuring that risks remain within the organization's defined risk appetite.

The other choices offered do not accurately reflect the intent of a mitigation strategy. Increasing revenue is a goal that does not directly relate to risk management. Avoiding all risks is an unrealistic approach since some risks are inherent to operation; thus, complete avoidance is not feasible. Focusing solely on compliance neglects the broader goal of risk management, which encompasses identifying and managing various risks beyond just meeting regulatory requirements.