RISK MITIGATION

STRATEGIES
WHAT IS RISK MITIGATION?

Risk mitigation is a proactive business strategy to identify,

assess, and mitigate potential threats or uncertainties that could
harm an organization's objectives, assets, or operations. It entails
specific action plans to reduce the likelihood or impact of these
identified risks.
STRATEGIES OF RISK MITIGATION:

1. Risk Acceptance:
Risk acceptance comes down to "risking it." It's coming to terms
that the risk exists and there is nothing you will do to mitigate or change it.
Instead, it understands the probability of it happening and accepting the
consequences that may occur. This is the best strategy when risk is small or
unlikely to happen. It makes sense to adopt risk when the cost of mitigating
or avoiding it will be higher than merely accepting it and leaving it to
chance.
STRATEGIES OF RISK MITIGATION:

2. Risk Avoidance:
If a risk from starting a project, launching a product, moving your
business, etc. is too large to accept, it may be better to avoid it. In this case,
risk avoidance means not performing that activity that causes the risk.
Managing risk in this way is most like how people address personal risks.
While some people are more risk-loving and others are more risk-averse,
everyone has a tipping point at which things become just too risky and not
worth attempting.