risk minimization

A *risk management technique that reduces the likelihood of occurrence of a *risk or reduces the potential impact of a *risk. If a risk has been managed to acceptable levels of *residual risk, the incremental costs of attempting *risk elimination may be unacceptably high. For example, an organization may significantly reduce levels of inventory *shrinkage by establishing robust security measures around a warehouse. Once an acceptable level of shrinkage has been achieved, it may be too costly to spend more on security measures, as additional investment may result in an unacceptably small benefit.

Auditor's dictionary. 2014.

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