What is the term used when risk is formally accepted?

The term used when risk is formally accepted is "accepted." This indicates a conscious decision made by an organization to acknowledge a particular risk and recognize that it is within their risk tolerance, without taking specific actions to mitigate or transfer that risk. Acceptance often occurs in instances where the costs of mitigation or avoidance outweigh the potential impact of the risk manifesting. This approach allows an organization to continue operations while maintaining awareness of potential issues that may arise.

In contrast, the other choices reflect different risk management strategies. Transferred refers to shifting the liability associated with a risk to another party, such as through insurance. Treated involves implementing controls or measures designed to reduce the probability or impact of a risk. Terminated means eliminating the risk entirely, either by ceasing the activity that creates the risk or implementing changes to eliminate it from the environment altogether. Understanding these distinctions is crucial in comprehensively managing information security risks.