Risk acceptance
Risk acceptance retains an exposure rather than avoiding it or introducing further treatment. A reasoned acceptance considers the objectives, assessment, appetite, capacity and costs and benefits of additional action. Existing controls may remain in place and monitoring may still be required. Acceptance can concern the residual exposure after other treatments rather than an entirely uncontrolled activity.
Worked example
A business retains a small insurance excess because paying a higher premium to remove it would cost more than the expected benefit. It keeps a reserve and monitors claims experience rather than assuming the exposure has vanished.
Common mistake
Accepting risk is not the same as failing to notice it or ignoring an obligation. Some safety and legal duties cannot be set aside merely because management is willing to bear a loss.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBL | Direct | September 2026–June 2027 |