What actions are taken to lessen or mitigate risks?

Risk mitigation involves actions taken to lessen the likelihood or impact of a risk. Among the options provided, risk reduction specifically refers to strategies employed to decrease the probability of a risk occurring or to lessen the severity of its consequences. For example, installing security systems can reduce the risk of theft or damage to property, while implementing safety protocols in a workplace can minimize the risk of accidents.

This approach is essential in various industries and can include methods such as training employees, using protective equipment, or improving infrastructure to withstand adverse events. Each of these actions contributes to lowering potential losses or incidents, making risk reduction a fundamental strategy in risk management.

Other concepts mentioned, like risk avoidance or transfer, play different roles in risk management. Risk avoidance means eliminating the risk entirely by not engaging in certain activities, while risk transfer involves shifting the financial burden of the risk to another party, often through insurance. Risk reduction, however, directly targets minimizing the risk itself, which is why it is the correct answer in the context of actions taken to mitigate risks.