What term describes the process of keeping a risk under observation instead of responding to it?

The term that describes the process of keeping a risk under observation instead of responding to it is "retaining." Retaining a risk means that an organization acknowledges its existence but chooses not to take any specific action to address it at that time. This approach often implies that the potential impact of the risk is deemed acceptable or that resources may not be allocated to mitigate it.

Retaining a risk allows for ongoing monitoring and reassessment, ensuring that if the risk becomes more relevant or if circumstances change, the organization can adjust its strategy accordingly. This can be particularly appropriate in situations where the cost of mitigation is higher than the potential loss from the risk itself or where the likelihood of the risk occurring is low.

In contrast, other options involve more active responses to risks. Avoiding requires eliminating the risk entirely, mitigating involves reducing the impact or likelihood of the risk, and transferring means shifting the risk to another party, such as through insurance or contracts. Each of these strategies represents a different approach compared to retaining, which focuses on observation and acceptance.