Compare and evaluate risk management techniques from experts in the field.

Assignment Bus 401 Week 4 – Managing and identifying risk

Depending on the risk, there are different approaches to managing risk. Most experts agree there are three basic approaches to managing risks: reduction, avoidance and transfer.

You can avoid potentially dangerous situations by taking precautions (e.g., not entering a deal with an insecure supplier).

Reduce risk is about mitigating the effects of potential risks (e.g. increasing security for sensitive data).

Third, the risk transfer refers to the transfer of any possible losses associated with an event, activity, onto another entity, or person through different insurance policies or agreements. For example, property damage insurance is available in case natural disasters.

Experts suggest creating a solid contingency strategy plan. It will detail the procedures that should be followed when dealing with particular types of risk. They also advise regularly reviewing progress and corrective actions when needed.

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