Management has decided that transactions less than $50 no longer require authorization. Which of the following risk management strategies does this…

Comprehensive and Detailed Step-by-Step Explanation:

Risk Acceptance: By deciding that transactions below $50 do not require authorization, management

is consciously accepting the low-level risk associated with this decision to streamline processes and

reduce administrative burdens.

Reference: IIA Practice Guide on Risk Management explains that risk acceptance involves tolerating

risks that fall within the organization’s risk appetite.

Other Options:

Option A: Risk avoidance would involve eliminating the activity altogether, which is not the case

here.

Option C: Risk reduction would involve implementing controls to mitigate the risk, not eliminating

authorization requirements.

Thus, the correct answer is B. Accept.