What is risk mitigation and how it is monitored, Financial Management

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Q. What is Risk mitigation and how it is monitored?

1. When managing risks, there are several risk strategy options to be considered. Risk may be avoided entirely, transferred to another party, or exposure to the risk can be reduced.

2. Acceptance of the risk should be considered only as a last resort, and should only be applied for items that cannot be addressed by any other strategy.

3. The mitigation steps must be appropriate, cost effective and achievable. The development of these steps should encourage problem solving and innovative solutions, with the objective of avoiding the risk or reducing the impact as much as possible.

4. When discussing action items, it is important to remember that interpretation of each risk will differ from person to person, with the recommended course of action varying according to the person or organizations perception project management, objectives, environment, experience and risk tolerance level.

5. The risk assessment sheet (RAS) or risk entry form, is the appropriate place to record all known information about the risk.


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