Risk mitigation can be defined as the reduction of risk!
Startup ecosystem is on the rise in the whole world. People are venturing into new businesses to grab ample opportunities in striving through the corporate world. Although, everything comes with risks and startups or already established company projects are not exception to that. The formal identification and sorting out the probable risks, and making possible plans to minimize the effect of the risk is called risk mitigation.
Strategies For Risk Mitigation:
Every process needs a proper strategy or various strategies to smoothly execute it. Unplanned processes can hamper the efficiency and in the long run destroy the process. Similarly, Risk mitigation should be done with the right strategies for maximum effect. In this article we are going to talk about 5 useful strategies to properly execute Risk Mitigation strategies.
Steer Clear Of The Risks:
The most common and intelligent way is to steer clear of the impending risk if possible. Avoiding it, the project or company can save both money and time. By already testing the field from where the risk is expected to come, the company might be able to stay away from those risks. Risks which can have a huge impact on the proceedings of a project are generally avoided.
Acceptability Of The Risks:
Dedicated team for risk mitigation purposes should sort out the risks which have less amount of negative consequences and should be accepted. The effect of the risk on cost, schedule and performance are to be calculated for the final call on the acceptability of the risks.
Containment Of The Risks:
Restraining or putting control on the risks are also a good way to mitigate risks. After thoroughly calculating the amount of loss in costing, scheduling and performance, risks needed to be contained are selected. A team is selected that is dedicated to the purpose of making appropriate strategies to reduce the risks.
Passing On The Risks:
An effective way of risk mitigation is passing on the risks. The team finds the predictable risks and the parties responsible for those risks. After that, the risk is shared or transferred. Indemnity clauses or buying off various policies like insurance are some possible ways to do that.
Detect The Risks Continuously:
The detection process of the risks should go on without any halt or stoppage. Look after the possible risky department continuously and measure the probability of the risks to happen. This alertness can also be useful for the company as it can save and prepare them from upcoming risks.
