Which of the following is NOT a risk management strategy?

Risk enhancement is not considered a typical risk management strategy. In the context of risk management, the main focus is on minimizing or managing the negative impacts that risks can have. The first three strategies—risk avoidance, risk reduction, and risk transfer—are all designed to address risks in various ways.

Risk avoidance involves eliminating the possibility of risk occurring by choosing not to engage in actions that would produce that risk. Risk reduction aims to lessen the impact or likelihood of the risk, implementing measures that mitigate its effects. Risk transfer involves shifting the burden of risk onto another party, such as through insurance.

In contrast, risk enhancement implies increasing the level of risk or taking on additional risk in hopes of achieving a higher reward. This is not a conventional risk management strategy because it goes against the primary goal of preserving resources and minimizing potential losses. Therefore, identifying risk enhancement as the option that does not fit within the standard framework of risk management strategies highlights its distinction from the others.