Which method involves a planned action for accepting risks?

The method that involves a planned action for accepting risks is acceptance. In the context of risk management, acceptance refers to acknowledging the existence of a risk and deciding to take no action to mitigate it, thereby accepting the potential consequences. This approach is often taken when the cost of mitigating the risk is greater than the potential loss that could occur if the risk were to materialize.

Acceptance can be a strategic choice in risk management, as it allows organizations to allocate their resources more effectively by focusing on risks that are more likely to occur or have a higher impact. A well-documented and communicated acceptance strategy is crucial, as it ensures that stakeholders are aware of the risks and the reasoning behind the decision to proceed without active mitigation.

In contrast, avoidance involves eliminating the risk entirely by changing plans or actions, transference involves shifting the risk to another party (like through insurance), and mitigation involves implementing measures to reduce the impact or likelihood of the risk occurring.