Which practice involves handling risk associated with an activity without accepting all risks?

The practice that involves handling risk associated with an activity without accepting all risks is best represented by risk transference. Risk transference is a strategy that involves shifting the risk from one party to another, often through contracts or insurance. By transferring risk, an organization can manage its exposure to potential losses or negative outcomes while still undertaking the activity in question.

For example, when a company hires a third party to handle certain operations or purchases insurance, they are transferring some of the risk associated with those activities to another party. This allows the company to continue operating without having to bear the full brunt of potential risks themselves, effectively managing their overall risk profile.

In contrast, other practices such as risk acceptance involve acknowledging the risk and deciding to take no action, which does not handle risk beyond recognition. Risk reduction focuses on implementing measures to minimize the likelihood or impact of risk, while risk avoidance aims to eliminate the risk entirely by not engaging in the activity. In this context, since the question specifies handling risk without accepting all risks, risk transference is the most appropriate choice.