A-Z Popular Blog Risk Treatment Search »
Risk Treatment
Related Guides

4 Types of Risk Reduction

 , updated on
Risk reduction is an action or inaction designed to decrease the potential for future losses. This includes strategies to reduce the probability of a risk occurring and strategies to reduce the impact if a risk does occur. Generally speaking, there are four ways to reduce risk:

Risk Avoidance

Avoiding 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 Mitigation

Pursuing 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 Transfer

Paying to transfer risks to an insurance company or business partner.

Risk Sharing

Finding 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
Reducing risk exposures by avoiding, mitigating, transferring or sharing risks.
Related Concepts
Next: Risk Mitigation
More about risk reduction:
Risk Measurement
More ...
If you enjoyed this page, please consider bookmarking Simplicable.

Risk Treatment

The five things that can be done about risk.


An overview of various types of insurance.

Risk Measurement

An overview of different ways to measure risk with examples.

Risk Impact Examples

A list of common risk impacts with a few detailed examples.

Risk Measures

A list of the common measurements for business risk.

Risk Decision

An overview of risk decisions with examples.

Risk Planning

An overview of risk planning with examples.

Project Risk

A list of common project risks.

Facility Risk

An overview of facility risk with examples.

Resource Risk

The probability that you will fail to meet a goal due to a lack of resources such as skilled workers or financing.

Schedule Risk

An overview of schedule risk with examples.


An overview with schedule crashing for projects with examples.

Fast Tracking

An overview of fast tracking with examples, advantages, disadvantages and alternatives.

Scope Risk

An overview of scope risk with examples.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map