Which option best defines risk mitigation?

Risk mitigation involves taking proactive measures to minimize the potential impact of risks on a project. This means identifying possible threats and implementing strategies or actions designed to reduce their likelihood or lessen their consequences should they occur. The focus of risk mitigation is not just to acknowledge risks but to actively engage in efforts to manage them, ensuring that the project has a better chance of achieving its objectives without significant disruptions.

By taking action to minimize potential damage, project managers can create a resilient project environment. This may include strategies such as developing contingency plans, allocating resources for risk responses, or implementing safety measures. Effective risk mitigation can lead to smoother project execution and better outcomes, even in the face of uncertainties or challenges.

In contrast, ignoring potential threats undermines project success and can lead to unforeseen issues, while transferring risk to another party involves shifting the responsibility of the risk without necessarily minimizing its potential impact on the project. Eliminating risks entirely is often impractical and can be impossible in many cases, as risks are inherent to all projects.