What risk management strategy is utilized when implementing safeguards to lessen the impact of potential threats?

The risk management strategy that involves implementing safeguards to lessen the impact of potential threats is termed risk mitigation. This approach focuses on reducing the likelihood or impact of risk to an acceptable level by applying appropriate controls or safeguards. For instance, installing firewalls, encrypting sensitive data, and conducting regular security training for employees are all examples of mitigation strategies designed to minimize potential security breaches or threats.

In risk mitigation, safeguards can be physical, technical, or administrative, aimed at directly addressing identified risks by reducing their severity. This proactive approach helps organizations maintain a secure environment while preparing for any adverse events that may still occur.

The other concepts relate to different strategies in risk management. Risk acceptance involves choosing to accept the risk when the cost of mitigation is greater than the risk itself, while risk avoidance entails eliminating the risk altogether by discontinuing the activities that generate it. Risk transference involves shifting the risk to a third party, such as through outsourcing or purchasing insurance. Each of these strategies addresses risk differently, but risk mitigation specifically targets the implementation of safeguards to practically reduce the impact of associated threats.