Which term describes measures taken to minimize the impact of potential risks?

The term that describes measures taken to minimize the impact of potential risks is risk mitigation. Risk mitigation involves implementing strategies and practices aimed at reducing the likelihood and/or consequences of adverse events. This can include a variety of actions such as adopting effective security controls, developing response plans, and conducting staff training to ensure readiness in the event of a risk materializing.

By focusing on risk reduction strategies, organizations aim to manage vulnerabilities proactively, maintaining operations while safeguarding assets and information. This distinguishes risk mitigation from other concepts in risk management, such as risk assessment, which identifies and evaluates risks, and risk transfer, which involves shifting the financial burden of a risk to another party, often through insurance. Risk acceptance, on the other hand, relates to recognizing a risk but deciding not to take any action to mitigate it, thereby accepting the potential consequences. Thus, risk mitigation serves as a core strategy in an effective risk management framework.