Which of the following best describes risk management strategies?

Risk management strategies are comprehensive approaches that seek to minimize potential losses by employing various techniques. This includes a mix of methods such as risk avoidance, risk reduction, risk sharing, and risk retention. The goal is to effectively manage the risks an organization faces rather than entirely avoiding them or attempting to prepare for every single loss scenario, which can be impractical and costly.

By employing a range of techniques, organizations can identify, assess, and respond to risks in a way that balances risk and opportunity, creating resilient systems that adapt to changing environments. This multifaceted approach enables businesses, regardless of size, to protect their assets, secure their operations, and ensure long-term sustainability. Focusing solely on risk avoidance or attempting to account for every possible scenario would not provide a balanced or realistic strategy in real-world applications, and indicating that these strategies only apply to large businesses overlooks their relevance and importance for organizations of all scales.