Under which condition might an organization assume the risk?

An organization might assume the risk when both the probability of occurrence and the impact of loss are low because in such scenarios, the overall potential for significant negative consequences is minimal. This strategy is often employed as part of a broader risk management approach, allowing organizations to allocate resources effectively by focusing on risks that pose a more substantial threat.

When the likelihood of a risk event happening is low, and even if it does occur, the impact it would have is manageable or minor, organizations can justify not investing heavily in mitigation strategies. Adopting a stance of risk assumption in these situations enables companies to prioritize their efforts on more pressing risks, thereby optimizing their risk management resources.

In contrast, if the probability of occurrence is high or the impact of loss is severe, organizations typically aim to mitigate or transfer those risks rather than assume them. Similarly, having all assets on a risk list does not inherently justify risk assumption; rather, it necessitates analysis to determine the risk levels associated with each asset. Hence, the condition wherein both the occurrence likelihood and the impact are low aligns best with the rationale for assuming risk.