1. Health And Safety
Requiring workers on a construction site to use safety equipment.2. Exchange Rates
A European car manufacturer reduces exchange rate exposure to the Japanese Yen by paying Japanese part suppliers with yen from their sales in Japan.3. Customer Service
A hotel reduces the risk of bad customer reviews by empowering all staff to handle customer complaints on the spot. For example, staff are able to upgrade a customer's room upon receiving a reasonable complaint.4. Quality
A car manufacturer reduces the risk of expensive and damaging model recalls with more rigorous quality assurance processes.5. Dispute Risk
A construction company reduces the risk of disputes by sending representatives to neighbors of a site to explain the schedule and what will be done to keep noise and impact to a minimum.6. Weather Risk
A solar power company reduces weather risk by scheduling critical construction tasks during the months with the best weather in a particular region.7. Financial Risk
An infrastructure company reduces interest rate risk and refinancing risk by selling long term bonds when rates are low.8. Project Management
A project manager reduces project risk by breaking a project into small regular deliveries of weeks in duration.| Overview: Risk Reduction | ||
Type | ||
Also Known As | Risk Mitigation | |
Definition | An action that reduces the impact or probability of a risk. | |
Risk Treatments | ||
