Definition
Risk Mitigation involves proactive steps to reduce the probability or impact of potential risks.
Common Mitigation Strategies
🔹 Avoidance – Changing plans to eliminate risk (e.g., not using unreliable suppliers).
🔹 Reduction – Implementing safeguards (e.g., cybersecurity measures).
🔹 Transfer – Using insurance or outsourcing to shift risk.
🔹 Acceptance – Preparing for the risk if it’s unavoidable.
Example in Action
A construction project in a hurricane-prone area:
✔ Uses hurricane-resistant materials (Risk Reduction).
✔ Insures the site against damage (Risk Transfer).
✔ Creates an emergency response plan (Risk Acceptance).
Benefits
✔ Minimizes project disruptions.
✔ Protects financial stability.
✔ Improves team confidence by addressing uncertainties.
Challenges
❌ Not all risks can be fully controlled.
❌ Can be expensive to implement strong mitigation measures.
