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What risk management strategy involves accepting a certain risk because removing it could lead to losing a benefit?

  1. Avoidance

  2. Transfer

  3. Reduction

  4. Retention

The correct answer is: Retention

The strategy of retention involves acknowledging and accepting a certain level of risk because eliminating it could lead to losing a beneficial opportunity or advantage. This approach is particularly relevant in health coaching, where certain risks, such as variability in client progress or engagement, may be balanced against the potential rewards of client outcomes, satisfaction, and overall coaching effectiveness. For instance, a health coach might determine that the risk of a client's diet change not yielding immediate results is acceptable due to the overall long-term health improvements that could follow. Retention is often chosen when the potential negative consequences are manageable or when the cost of mitigating that risk outweighs the benefits, making it a pragmatic choice in many situations.