Which of the following is NOT a way to manage risk?

Denial is indeed not a legitimate method for managing risk. Effective risk management involves strategies that acknowledge the existence of risk and seek to mitigate, transfer, retain, or reduce it through various actionable approaches. Denial implies that a risk does not exist or that its potential impact is being ignored, which does not contribute to informed decision-making or protection against potential losses.

In contrast, transferring risk often involves shifting the financial burden of loss to another party, typically through insurance. Retention involves accepting the risk and budgeting for any potential losses that may occur, while reduction focuses on decreasing the likelihood or severity of a risk through proactive measures. Each of these strategies serves a role in a comprehensive risk management plan, while denial does not provide any real safeguards or preparations against the risks that may arise.