What is risk management strategies?

Every project we face will address different risks in the day-to-day operations or at long term. Even the most carefully planned project can encounter problems and unexpected risks. Some will be good and some bad. Some minor some bigger. But this does not mean we should give up, when we are facing unexpected problems!
Once your organization has identified the existing hazards and their associated risks, further evaluation for risk treatment options become possible.

Your ability to mitigate risk allows you to proactively acknowledge and accommodate risks. Getting rid of risk altogether is not a feasible solution, but by measuring risk, your organization can decide how to deal with each kind of risk the best way.

Risk management is the process of determining an acceptable level of risk, calculating the current level of risk, and then either accepting the risk, avoid the risk or taking steps to reduce to acceptable level of risk.

In this post, we will introduce the five different strategies to mitigate risk, which we will dike deeper intro in the following posts.

Mitigation

Mitigation refers to any action or sustained effort undertaken to reduce a hazard risk through the reduction of the likelihood and/or the consequence component of that hazard’s risk. In other words, mitigation seeks to either reduce the likelihood of occurring or reduce the impact of the consequences if it occurs.

Mitigations goals

Mitigation goals refer to the different methods of dealing with risk. When considering the mitigation options suitable for treating a risk, several general goals classify the outcome that your strategy may seek:

1) Risk likelihood reduction

2) Risk consequence reduction

3) Risk avoidance

4) Risk acceptance

5) Risk transfer, sharing or spreading

OBS: Most strategies are most of the time not a clean risk consequence reduction or likelihood reduction but a combination between the goals!

Keep in touch to learn more about the 5 different goals in the upcoming posts, where we will zoom in at the specific goal.

Sources:

Coppola, D. P. (2015): “Introduction to international disaster management”

About the Author

admin_RoC

mail@carstensoelund.com

Other articles:

The Hierarchy of Controls
When working with any type of hazard, it is important to know, how effective your preventive and mitigative measures are. This can be done in a lot of ways – one of those being a ranking based on a classification of those barriers. This article will explain the Hierarchy of Controls, and how to use …
Risk Management
What is a hazard?
We look at risk and hazards in complex operations.
NAT and HRO; Summary
Are accidents inevitable or are they preventable? This post is a summary and a discussion of NAT and HRO. Click here to read more..

GET IN TOUCH

Feel free to contact us

for more information

+45 28 60 49 50

contact@rocconsult.eu

JOIN OUR NEWSLETTER

Our core business is rehearsing

excellence in your project


RoC Drill is used by:

RoC Consult ApS - All rights reserved.

We use cookies to allow us to better understand how the site is used. By continuing to use this site, you consent to this policy. Click to learn more