"Risk response": A choice in relation to an identified risk which can be categorised broadly as the decision whether to: 1. Avoid the risk, or2. Accept it. The broad choice to 'accept' a risk can be further classified according to whether the firm then retains, reduces or transfers the risk. Using this model, the classes of potential risk responses are therefore four, namely: 1. Avoid2. Accept and retain3. Accept and reduce, or4. Accept and transfer.