Common use of Risk response Clause in Contracts

Risk response. The management of the Project will determine the policy as to the manner of handling risks pursuant to cost-benefit considerations. The response of the management can be simplified into four types of possible responses:  Avoidance - avoidance of risk by avoidance of handling the matter of the activity that is generating the risk.  Acceptance - accepting the risk and not taking any real measures to mitigate it.  Reduction / mitigation - mitigation of the risk by implementing a mitigation plan comprised of controls and ways to handle the risk.  Transfer / sharing - sharing with other agents the handling of the risk.