Which of the following approaches may be taken when some risks cannot be completely avoided or mitigated?

When dealing with risks that cannot be completely avoided or mitigated, accepting or transferring the risk are both practical approaches.

Risk transference involves shifting the potential negative impact of a risk to another party, often through mechanisms such as insurance or outsourcing. This allows an organization to share or offload the financial implications of certain risks while still managing the underlying activities associated with those risks.

Risk acceptance, on the other hand, is when an organization acknowledges the risk and decides to accept it without taking any further action to mitigate or transfer it. This approach is often taken when the cost of mitigation is higher than the risk itself or when the impact of the risk is deemed manageable.

By combining risk transference and acceptance, organizations can effectively handle risks that they cannot entirely eliminate, ensuring that they have strategies in place for both sharing and accepting the financial consequences of risks. This dual approach reinforces a more comprehensive risk management strategy.