Risk Management Methods

Question 1

is the systematic process of identifying,
assessing, and mitigating threats
or uncertainties that can affect
your organization

Answer 1

RISK MANAGEMENT

Question 2

refers to the strategy where an
organization decides to accept
and keep certain risks rather than
transferring or avoiding them.
This means the organization
absorbs the potential losses or
consequences of the risk itself.

Answer 2

RISK
RETENTION

Question 3

the elimination of hazards, activities
and exposures that can negatively
affect an organization and its assets.

Answer 3

RISK
AVOIDANCE

Question 4

• Risk may be transferred from one firm to
  another.
• Risk may be transferred through insurance,
  contracts, or outsourcing.
• This method is effective for risks that are
  difficult to control or where the potential
  consequences are significant

aka Risk Transfer.

Answer 4

Risk Shifting

Question 5

is a risk management strategy that
involves implementing measures to
decrease the likelihood or impact of a
risk. This can include preventive
actions, process improvements,
safety measures, or contingency
plans to minimize potential harm.

Answer 5

Risk Reduction