Risk Mitigation

Question 1

What are the 4 common risk mitigation strategies?

Answer 1

1. Avoidance
2. Reduction
3. Transference
4. Acceptance

Question 2

In relation to risk mitigation strategies, define:

Avoidance

Answer 2

Taking measures to prevent risks from occurring.

Question 3

In relation to risk mitigation strategies, define:

Reduction

Answer 3

Performing risk analyses and taking steps to reduce the likelihood of a risk occurring, or reduce the impact should a risk occur.

Question 4

In relation to risk mitigation strategies, define:

Transference

Answer 4

Passing a risk on to a 3rd party via means such as outsourcing.

Question 5

In relation to risk mitigation strategies, define:

Acceptance

Answer 5

Accepting a risk as it stands, because the benefits of an action heavily outweigh its associated risk.

Question 6

What are the steps to handling risks?

(5)

Answer 6

1. Identify the risk
2. Assess the risk
3. Treat the risk
4. Monitor the risk
5. Report actions and outcomes