Which risk management strategy involves recognizing a risk and making a plan to address it?

The strategy of recognizing a risk and then making a plan to address it aligns well with the concept of mitigation. Mitigation involves identifying potential risks and implementing measures to reduce their impact or likelihood. This often includes preparing a plan or deploying strategies to lessen the negative effects of the identified risk.

In contrast, avoidance would mean entirely eliminating the risk by changing plans or processes to not encounter the risk at all. Acceptance indicates a recognition that risks exist but choosing to take no action, essentially acknowledging the risk exists without a preemptive plan to handle it. Transfer involves shifting the risk to another party, such as through insurance or outsourcing, rather than addressing it directly.

By focusing on recognizing the risk and planning strategically to deal with it, mitigation is the appropriate term that best represents proactive risk management in this context.