Risk Response Strategies Flashcards
1
Q
Risk Response Strategies
A
Avoidance
Transfer
Reduction
Retention
2
Q
Avoidance
A
Don’t pursue the risk
3
Q
Transfer
A
Transfer risk to a 3rd party such as an insurance company
- buy a warranty to protect from risk
- set up fixed contract fees (so that if it breaks, the contractor fixes it)
4
Q
Reduction
A
Reduce risk by testing the market beforehand for example Telus testing in pilot areas
5
Q
Retention
A
Accept the risk, typically when it is low risk
Costs of risk are far outweighed by potential benefits
