Define risk appetite and residual hazards. Real-world scenarios may demonstrate the risk appetite-residual risk trade-off.
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- Risk appetite and residual risks should be defined. The trade-off between risk appetite and residual risk may be shown using a real-world scenario.It is important to establish both the risk appetite and the hazards that are still present. A situation that takes place in the real world may be used to illustrate the trade-off that exists between a person's appetite for risk and their level of residual risk.Risk reduction strategy(ies) is (are): Select one: a. Damage limitation b. Risk avoidance, Risk detection and removal, and Damage limitation c. Risk detection and removal d. Risk avoidance
