What is the most effective way in managing the risk?
Share
What is the most effective way in managing the risk?
Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.
Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.
Answer:
Explanation:
Avoidance
Best case scenario, you can avoid risk repercussion altogether. But in forfeiting all activity that carries risk, you also forfeit all associated potential return and opportunity. It is up to you what type of risk activity you want to play with.
Reduction
Risk reduction implements small changes to reduce the weight of both risk and reward post-event. The reduction will require some process and plan manipulation, but it will save your company from a severe loss in the case of a high-risk manifestation.
Sharing
Risk sharing or transferring redistributes the burden of loss or gain over multiple parties. This could include company members, an outsourced entity or an insurance policy.
Retention
Risk retention involves assuming the loss or gain, entirely. This option is best for small risks where the losses can be easily absorbed and made up.
MY ANSWER