Certified Fraud Examiner Practice Exam 2025 – All-in-One Guide to Master Your Certification!

Question: 1 / 400

What does mitigating the risk involve?

Eliminating all potential adverse events

Reducing the probability of an adverse event occurring

Mitigating the risk primarily involves reducing the probability of an adverse event occurring. This means implementing strategies and measures that can lower the likelihood of negative outcomes while recognizing that it may not be possible to eliminate all risks completely. Strategies could include establishing stronger controls, conducting regular training, and implementing policies designed to minimize vulnerabilities, ultimately leading to a more robust risk management framework.

In this context, while it’s crucial to understand the risks present, the focus is on practical steps to lessen those risks rather than seeking to ignore or remove them entirely. For instance, it would be unrealistic to expect complete elimination of all adverse events (as suggested by another option), since some risks are inherent in any operation or environment. Thus, the goal is to manage and mitigate those risks effectively.

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Ignoring potential adverse events altogether

Documenting risks for future analysis

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