Risk Mitigation is the effort to
reduce the risk impact and lessen the likeliness of it occurring again. Within Risk Mitigation Strategies are four
tenets that are unique to Disaster Recovery and solid Continuity Plan: Risk
Acceptance, Risk Avoidance, Risk Limitation, and Risk Transference. A company should choose one tenet hat is
tailored to their business needs and profile. A Risk Mitigation plan should
consist of a number of things: identify the root cause of risks, select
resources specific to risk mitigation, identify alternatives, assess layers of
mitigation alternatives, evaluate risks, and communicate results based on
findings to all parties.
of risks that on a grand scale are acceptable on one hand, and intolerable on another. This does not reduce its effects by one
instance. Considered a common option
when matched against avoidance or limitations when it clearly outweighs the
risk itself. A company may use risk
acceptance if they are out to save company funds and the likelihood of risks
occurring again are minimal. A few
examples of risk acceptance are Investing (low level of risk), Insurance,
Derivatives, Projects, and Business Equity.
elimination of risks by altering the parameters set forth. The risk is altered
so much that the value changes to either a reduced state or somewhat acceptable
value. Be careful not to avoid one risk
and be bombarded by an unknown greater risk. Risk avoidance is quantitative in
nature. A quantitative risk assessment will
assess the change made to assess if it is worth the cost differential. Considered the most expensive strategy and underutilized
because certain risks are better left untouched.
Limitation. Most common strategy used among
businesses. This limits exposure to risks by leveraging some sort of action. It
combines both risk avoidance and acceptance. Companies that have properly
planned and evaluated for unexpected losses and have taken the steps to reduce
its impact. An example would be
identifying alternate locations for a brief beforehand if the original site was
no longer available. Hindering the original location but not the entire plan
for the brief to be given. Risk
limitation should be built in stages, tailored to one’s own experiences. One would never fail if he/she has multiple
avenues to exhaust.
risk to a willing third party is a preferred method in regards to risk transference.
There are many companies who would
rather invest in another company to deal with certain operations that is either
foreign to them or who is able to take on said risks. This can be payroll services or simply
customer service for IT needs. It also
allows the company to shift more focus on other important things.