Risk Management Strategies

Risk Management = The process whereby organisations methodically address the risks associated with their activities with the goal of achieving sustained benefit.

Identifying and quantifying vulnerability allows an organisation to prioritize resources to meet the most severe risks and to set defined thresholds at which action on an issue will be triggered.

Risk Management strategies are often classified as the four T’s:

  • Tolerate – Accept the risk.
  • Transfer – Spread or share the risk by taking our insurance cover, dual / multi-sourcing, use contract terms to ensure the costs of risks are borne by the supplier, or liquidated damages clauses.
  • Terminate – If the risk is too great, cannot be reduced or is too costly to be justifiable.
  • Treat – Taking active steps to mitigate, prevent, minimise or reduce the probability and impact of the risk occurring.

“Create – Deliver – Inspire”

Luminary Group Ltd ©


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s