When choosing to accept the risk due to its low probability, which term best describes this action?

Accepting the risk due to its low probability is best described as retaining the risk. This term refers to the strategy where an organization acknowledges that a particular risk exists but decides to bear the consequences if that risk were to materialize. This approach is often adopted when the probability of an adverse event occurring is low, and the potential impact does not warrant additional expenditure on mitigation or avoidance strategies.

In project management, retaining risks can be a pragmatic choice, particularly when the costs of intervention to avoid or mitigate the risk exceed the potential loss associated with it. This strategy is based on thorough risk assessment where the likelihood and impact of the risks are evaluated, leading to an informed decision to simply accept it as part of the operational environment. Successful risk retention implies that the organization has adequate contingency plans in place to address any potential issues that could arise from the retained risks.