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21 Tolerate, treat, transfer and termina... > Project and strategic risk response - Pg. 231

tolerate, treat, transfer and terminate 231 or eliminate the risk entirely and thus will need to implement alternative control measures. This is a particular issue for public services. There may be certain risks that have high likelihood and high impact, but the organization is unable to terminate the activities giving rise to them. This may be because the activity is a statutory requirement placed on a government agency or public authority. The public service imperative may restrict the ability to cease the activity, so the organization will need to introduce control measures, to the greatest extent that is cost-effective. It is likely that such control measures will be a combination of risk treatment and risk transfer. As these control measures are applied, the level of risk will move to a level where the organization will be able to tolerate the risk. Because of the variable nature of risks, it may not be possible to get all risks to a level that is within the risk appetite of the organization. The organization may find that it has to tolerate risks beyond its empirical risk appetite in order to continue to undertake a certain activity. Project and strategic risk response The overall approach to the management of control and opportunity risks is similar to the approach adopted for the management of hazard risks. However, there are sufficient differences in the range of options available for these to be presented