The correct option is Recognizing that some threats are impractical or too costly to fix and accepting the possible consequences.

This choice describes risk acceptance because the organization acknowledges residual exposure after evaluating costs and benefits and then formally decides to live with the possible consequences. Risk acceptance is a deliberate management decision that follows assessment and analysis and it is typically documented and monitored rather than being an arbitrary choice.

Transferring the exposure to another party through insurance or contractual arrangements is incorrect because that describes risk transference. Transference shifts financial or legal responsibility but does not mean the organization has accepted the exposure without action.

Implementing safeguards to remove all possible risks is incorrect because removing all risk is usually impossible. That option describes attempts at mitigation or avoidance rather than the conscious decision to accept residual risk.

Ignoring potential threats and failing to assess impacts is incorrect because acceptance requires assessment and an informed decision. Ignoring threats is negligent and not a valid risk response.

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