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

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.