Risk Mitigation Strategies

There are many mitigation strategies that can reduce damage from hazards. 

 

·        Risk avoidance: Sometimes, the best risk response strategy is to eliminate the threat altogether. For example, if you are traveling into the path of an oncoming hurricane, canceling your trip would be risk avoidance.

 

·        Risk transference: You can share or transfer certain types of risk such that you wouldn’t bear the impact alone. Insurance is a form of risk transference, as you pay a fee to a third party to avoid the full financial brunt of things like car accidents or life and health protection.

 

·        Risk acceptance: When a risk is small enough, it might make sense to just live with it. For example, if you’re planning an outdoor event with a 10% chance of rain, accepting that small risk might make more sense than rescheduling. For threats that bring a higher potential impact, you need to determine your acceptable level of risk.

 

·        Risk mitigation: Many types of risk are neither avoidable nor acceptable. But you can mitigate safety and business risks by reducing their likelihood of occurring and/or the impact they could have. For example, an industrial bakery can’t avoid having massive heat sources active, but they can take steps to reduce the danger to employees and property.