What are vaious Risk Management approaches ?

Below are few approaches for dealing with the risks :

  • Avoidance: eliminate, withdraw from or not become involved. An example is deciding not to use a new or untested procedure that you’re concerned may not produce the desired project results.
  • Sharing / Transfer: outsource or insure. Suppose you choose to proceed with your plans to build a new $50 million facility (see the example in the preceding section). You can buy disaster insurance on the facility so the company doesn’t have to assume the full burden of a total loss if a hurricane destroys the facility.
  • Reduce / Mitigation: Either reduce the likelihood that a risk occurs, or minimize the negative consequences if it does occur.
  • Retention – accept and budget

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