Podcast
Questions and Answers
What is the recommended action to take if you cannot prevent a risk from happening?
What is the recommended action to take if you cannot prevent a risk from happening?
Which risk management strategy involves paying someone else to bear the risk?
Which risk management strategy involves paying someone else to bear the risk?
What does risk reduction involve?
What does risk reduction involve?
If you can't avoid, mitigate, or transfer a risk, what is the remaining option?
If you can't avoid, mitigate, or transfer a risk, what is the remaining option?
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What analogy is given for risk reduction in the text?
What analogy is given for risk reduction in the text?
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In what situation is accepting a risk the only choice according to the text?
In what situation is accepting a risk the only choice according to the text?
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Study Notes
Risk Management Strategies
- Recommended action if a risk cannot be prevented includes planning for a response when the risk materializes.
- Paying someone else to bear the risk is known as risk transfer, often achieved through insurance or outsourcing.
- Risk reduction involves implementing measures to lower the likelihood or impact of a risk, such as contingency planning or improved safety protocols.
Remaining Options in Risk Management
- If avoiding, mitigating, or transferring a risk isn't feasible, accepting the risk becomes the last available option.
Analogy for Risk Reduction
- An analogy used for risk reduction compares it to wearing a seatbelt while driving; it does not prevent accidents but decreases the potential severity of injuries.
Situational Acceptance of Risk
- Accepting a risk may be the only choice when the cost of mitigation exceeds the potential loss, especially in cases where risks are minor or unavoidable.
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Description
Test your knowledge on risk management techniques including avoiding and mitigating risks. Learn about strategies to prevent potential risks from impacting your projects.
