Are you a Risk Expert?, Rohit Jaryal, Harpinder Kaur, Joel Mathew, Andrea Vu Truang [me reader TXT] 📗

Minimize the Risks

Risk minimization is the process of reducing the occurrence of a certain event in a project or process towards zero or in favour of the risk holder. In simple terms, risk-minimizing can be termed to utilize the risk in one's favours or reducing all or most of the ill effects caused by risk.

When it comes to project, uncertainty is bound to happen, and one should be prepared to deal with all of the attributes of the risk. There are many ways one can minimize the happening of risk e.g. 

Taking Insurance

The person who is prepared has less loss of investment as insurance is one of the main steps which can be taken to reduce the risks adverse effects.

Implementing risk protection strategies

The strategies which were composed during risk response planning can be deployed to reduce risk-averse effects.

huge capital as a reserve

It is a common practice to keep a part of total investment as a reserve which can be used when risk is dealt with.

Hiring experts related to the issue

Hiring someone who knows best as it describes one can take help from a knowledge expert who has experience on how to deal with specific risks.

Identify Risk Triggers

While dealing with risk it is essential to understand that trigger is a switch or condition related to risk which activates the risk in a certain combination of events. Risk triggers are usually hidden and can’t be found out with just evaluation of risk. To find a risk trigger through description and breakdown is necessary. 

When a risk trigger is identified, a plan of action can be made to deal with the risk and its effects on the project. Risk trigger is usually mentioned in risk watchlist which is essential to deal with risk in business. A watchlist is a list that contains all the risk and their chances of occurring and this list is further discussed to know various switches or triggers for specified risks.

Consider Threats and Opportunities  

Risk cannot be always considered negative as it brings positive attributes as well. The business wants the recurrence of positive risks whereas low or no occurrence of a negative risk. At times the business owner needs to consider which risk is profitable for the business and which risk can cause damage in profit margin. It depends on the person who is dealing with to decide if a risk is helpful for him or not. The altitude towards risk can change how the person deals with risk and consider them useful at times.

Strategy to Reduce the Risks

Mitigating risk is done in different stages and in order to deal with risks various methods or planning is done and many strategies are formed while planning risk response and watchlist. Various strategies help the risk bearer to avoid, accept or partially accept the components of a risk. There are various types of risk mitigation techniques through which strategies for risk reduction forms out off. Some of them are:

Risk avoidance

In this technique the risk bearer tries to evade the risk at any cost and create a work around plan regarding risk.

Risk acceptance

All the components of the risk are accepted by the owner of the risk and much of the time risk is accepted because it is considered as a positive risk.

Risk partial acceptance

There are times when a risk bearer can’t fully avoid risk, so he accepts some part of risk and deal only with the chosen part.

Risk transference

Taking insurance against specific risk is a kind of risk transference techniques used by business owners.

Conclusion

Risk management in projects has evolved over time. From when it was founded to the current time, the changes are drastic in the approach of projects. Risk management surely provides an