Knowing acceptance refers to reviewing the applicable license agreement for a proposed purchase of a shrink-wrap product and assessing whether it presents any unique risks. If unusual risks are present, the risks would be clearly identified in a memorandum for review and, if the cost-benefit of the engagement warrants, potential approval by senior management. Knowing acceptance is the most prevalent means employed by sophisticated organizations in addressing risk in transactions of this kind. Next time, we will finish up with the most sophisticated approach: mitigation.”]