A company calculates risk and decides to accept it without any insurance coverage. This is known as:

When a company decides to accept a risk without any insurance coverage, this practice is referred to as risk acceptance. This means the company acknowledges the inherent risk involved in a particular activity or decision and chooses to proceed with it, aware that it may lead to a loss or negative consequence. This approach can be strategic, especially if the potential losses from the risk are deemed manageable or if the cost of transferring that risk (through insurance, for example) is higher than the potential loss itself.

In contrast, risk avoidance would involve taking steps to completely eliminate the possibility of the risk occurring, which is not the case here. Risk mitigation refers to actions taken to reduce the likelihood or severity of a loss, which again does not align with the company's choice to accept the risk as is. Risk transference involves shifting the potential financial burden of a risk to a third party, typically through insurance, which is also different from the acceptance of risk. Thus, in this context, risk acceptance accurately describes the company's decision to proceed without insurance coverage.