Certified Governance Risk and Compliance (CGRC) Practice Exam 2025 - Free CGRC Practice Questions and Study Guide

Mitigation is a risk response planning technique specifically designed to reduce either the likelihood of a risk occurring or its potential impact on a project or organization. This approach involves taking proactive steps to lessen the severity of the risk if it happens, or to implement controls that can lower the probability of the risk's occurrence. For instance, if a risk involves potential data breaches, mitigation strategies could include enhanced cybersecurity measures, regular audits, and employee training on data security practices. These actions aim not only to decrease the chances of a breach but also to limit the financial and reputational damage should one occur.

In comparison, other techniques like exploitation focus primarily on taking advantage of positive risks (opportunities) rather than on reducing negative impacts. Transference involves shifting the risk to a third party, often through contracts or insurance, rather than managing it directly. Avoidance entails altering plans to completely eliminate the risk. Each of these techniques has a distinct role in risk management strategy, but when the goal is to reduce a risk's probability or impact, mitigation is the most appropriate method.