In risk management, what does 'risk mitigation' refer to?

Risk mitigation refers to the strategies and actions implemented to reduce or eliminate the potential impact of identified risks. It is an essential component of risk management that focuses on minimizing the likelihood of adverse events occurring and decreasing the consequences if they do happen. This involves a variety of approaches, such as implementing safeguards, creating contingency plans, or transferring risk through insurance. By concentrating on reducing the potential impact of risks, organizations can better protect their assets, ensure continuity, and maintain consumer trust, thus enhancing overall stability and resilience in their operations.

The other choices, while related to different aspects of business and risk assessment, do not accurately define risk mitigation. Identifying new payment opportunities, increasing transaction speeds, and analyzing competitor risks focus on expanding business functions or improving efficiency rather than addressing the measures taken to manage existing risks.