Which of the following is NOT a method of handling risk?

Risk innovation is not a recognized method for handling risk within the context of risk management strategies. The primary methods for managing risk typically include acceptance, avoidance, transference, and mitigation.

Risk acceptance involves recognizing the risk and deciding to proceed regardless of its potential impacts, often because the cost of mitigation is deemed higher than the risk itself. Risk avoidance takes the route of eliminating the risk altogether by changing plans or operations to sidestep potential issues. Risk transference involves shifting the risk to another party, commonly through insurance or outsourcing, thus protecting one’s own assets or operations.

In contrast, risk innovation does not align with established methodologies for addressing risks. While innovation in a broader sense can lead to new ways of reducing or managing risk, it does not specifically pertain to any direct strategy for dealing with risk in the framework recognized by risk management professionals. Instead, this term may suggest a more creative or unorthodox approach to problem-solving and may not fit into the traditional strategies commonly taught in risk management contexts.