Glossary definition: Risk Mitigation

Effective Risk Management: Techniques to Minimize Risk Exposure

Risk mitigation is the process of identifying, assessing, and reducing the potential for negative impacts of risks to an organization's objectives. It involves developing strategies to manage the risks and implementing those strategies to reduce the likelihood of their occurrence and/or the severity of their impact. Risk mitigation strategies can include risk avoidance, risk transfer, risk sharing, risk reduction, risk acceptance, and risk control. Risk avoidance involves eliminating or avoiding activities or situations that could result in the risk. Risk transfer involves transferring the risk to another party, such as an insurance company, who will assume the risk in exchange for a fee. Risk sharing involves sharing the risk between parties, such as when two companies form a joint venture. Risk reduction involves reducing the likelihood of the risk occurring or the severity of its impact. Risk acceptance involves accepting the risk and taking no action to reduce it. Risk control involves implementing measures to reduce the risk, such as implementing safety protocols or installing security systems.