Which strategy aims to minimize the impact rather than eliminate risk?

The strategy that aims to minimize the impact of risk rather than eliminate it is risk mitigation. This approach involves implementing measures and controls to reduce the severity and potential consequences of risks when they occur. For instance, in the context of insurance, this could involve utilizing safety protocols, implementing best practices, or developing response plans to ensure that if a risk materializes, its impact is lessened as much as possible.

Risk mitigation recognizes that while it may not be feasible to completely eliminate all risks, it is essential to employ strategies that can lessen their negative effects. This is in alignment with principles of risk management that emphasize preparedness and resilience.

In contrast, other strategies such as risk avoidance would involve steering clear of activities that generate risk altogether, which is not about minimizing impact but rather about eliminating exposure. Risk acceptance involves acknowledging the risk and deciding to take no action, accepting the potential consequences. Risk sharing typically involves distributing the risk among different parties, which may reduce individual burden but does not directly minimize the impact for a single entity.