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Governance, Risk, Audit & Privacy · Intermediate

Risk Rejection

Ignoring or denying the existence of a risk; an unacceptable response distinct from acceptance.

Definition

Risk rejection (risk denial) occurs when management disregards an identified risk without analysis or formal decision. It provides no legal defense and may constitute negligence. Exams list it to contrast with legitimate treatment options.

Example

Leadership dismisses an audit finding about missing backups without documenting any decision.

Exam tip

If an answer describes ignoring risk, it is rejection and never the correct choice.

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