Risk AvoidanceAvoiding an activity or position that may cause risk. For example, a business may decide that a new product strategy is too risky to pursue.
Risk MitigationPursuing an activity but finding ways to reduce its associated risks. For example, an amusement park can mitigate safety risks by eliminating latent human error in their maintenance procedures.
Risk TransferPaying to transfer risks to an insurance company or business partner.
Risk SharingFinding ways to reduce risks by pooling resources with others. For example, a group of companies may reduce the risk of losing key executives by planning to transfer resources on a temporary basis in the case of an unexpected loss.
|Overview: Risk Reduction|
|Definition||Reducing risk exposures by avoiding, mitigating, transferring or sharing risks.|
|Related Concepts||RiskRisk AcceptanceRisk ManagementRisk MitigationRisk TakingRisk Tolerance|