Which of the following is NOT a typical component of a risk management strategy?

A risk management strategy typically includes processes for identifying, assessing, and mitigating risks, which are critical for understanding and managing potential threats to an organization.

Risk identification involves recognizing and listing potential risks that could impact the organization's operations or objectives. This step is essential as it lays the foundation for the entire risk management process.

Risk assessment follows identification and entails evaluating the risks in terms of their likelihood of occurrence and the potential impact on the organization. This step helps prioritize the risks based on their severity, allowing for more effective management.

Risk mitigation is the strategy employed to reduce or eliminate the identified risks. It involves implementing measures and controls to minimize the impact or likelihood of adverse events, directly addressing the risks assessed earlier.

Risk aversion, on the other hand, refers to the general tendency to prefer certainty over uncertainty and may influence decision-making, but it is not a structured component of a risk management strategy itself. While risk aversion can shape an organization's overall approach to risk, it does not encompass the specific processes necessary for managing risks effectively. Thus, it is correctly identified as not being a typical component of a formal risk management strategy.