Hello,
There are two parts to the answer.
The first part, to remove the escalate option from menu context (where you right click on an incident and you could choose "Escalate"). For more information, please see this tech doc:
https://support.ca.com/us/knowledge-base-articles.TEC480053.html
The second part involves going into WSP. You will need to run WSP and locate the menubar_sd.htmpl or whichever menubar file that corresponds to the role whose menubar you are editing. After you open menubar_sd.htmpl in WSP, the Menu Designer function, located under the Tools menu in WSP, will be turned on, and will let you modify menu content as needed.