The 'Tolerate' approach, also known as risk acceptance, is a valid and common strategy in risk management. It involves a conscious decision to accept the potential consequences of a particular risk without taking any specific action to mitigate it. This approach is typically chosen when the potential impact of the risk is low, or the cost of implementing a mitigation strategy outweighs the potential loss. The organisation acknowledges the risk and agrees to bear any resulting losses. This is one of the '4 Ts' of risk response, which also include Treat, Transfer, and Terminate.

B. translate: This is not a recognized term in risk management methodology. It refers to converting information from one form or language to another.

C. transport: This term is incorrect. While 'transfer' is a valid risk response (shifting risk to a third party), 'transport' relates to logistics and movement.

D. take out: This is informal language and not a standard term. The correct term for eliminating the source of the risk is 'terminate' or 'avoid'.

1. CIPS (Chartered Institute of Procurement & Supply). (2018). Managing Supply Chain Risk (L5M2). Profex Publishing. In the section on risk response strategies

the '4 Ts' model is detailed

explicitly listing 'Tolerate' as a primary option for managing identified risks.

2. Waters

D. (2011). Supply Chain Risk Management: Vulnerability and Resilience in Logistics. Kogan Page. Chapter 6

"Responding to Risks

" outlines the main response strategies

including risk acceptance or tolerance

where an organization decides to live with the risk.

3. Slack

N.

Brandon-Jones

A.

& Johnston

R. (2016). Operations Management (8th ed.). Pearson. In the chapter on risk management (Chapter 18)

the concept of 'accepting the risk' (tolerating) is presented as a viable response when other actions are not justified.