Which risk management approach involves proactively addressing risks?

The option indicating risk prevention is correct because it focuses on taking systematic measures to identify and mitigate potential risks before they occur. This proactive stance seeks to eliminate or reduce risk factors, rather than waiting for risks to materialize and responding afterward. By implementing controls, conducting thorough assessments, and developing strategies aimed at preventing risks, organizations can enhance their overall resilience and maintain operational stability.

In contrast, the other approaches involve different strategies that are more reactive or based on distribution of risk. For example, transferring risk means shifting the burden of risk to another party, such as through insurance. Acceptance involves consciously acknowledging and bearing the risk, accepting potential consequences without preventative actions. Sharing risk often means distributing the risk among various parties, which does not inherently focus on preventing the risk itself but rather on managing its impact. Thus, prevention stands out as the most proactive and strategic approach to risk management.