Post by account_disabled on Mar 6, 2024 0:21:19 GMT -6
The party to another with a payment in return. and other damage. So you can buy a home insurance policy and transfer that risk to the insurance company. If anything goes wrong its the insurance company that bears the loss and in return for that peace of mind you pay a premium. When you own a business you have the option to transfer many of your risks to an insurance company as well. You can insure your properties and vehicles and also take out various types of liability insurance to protect yourself from lawsuits.
Well look at insurance in more detail in the next tutorial in the series but its a good option for dealing with risks that have a large potential impact Job Function Email List as long as you can find an affordable policy. Accept the Risk As weve seen risk management comes at a price. Avoiding a risk means constricting your companys activities and missing out on potential benefits. Reducing a risk can involve costly new systems or cumbersome processes and controls. And transferring a risk also has a cost for example an insurance premium. So in the case of minor risks it may be best simply to accept them.
Theres no sense investing in a whole new suite of expensive software just to mitigate a risk that wouldnt have had a very big impact anyway. For the risks that received a low score for impact and likelihood look for a simple lowcost solution and if you cant find one it may be worth simply accepting the risk and continuing with business as usual. The advantage of accepting a risk is pretty clear theres no cost and it frees up resources to focus on more serious risks. The downside is also pretty clear you have no controls in place. If the impact and likelihood are minor that may be fine.
Well look at insurance in more detail in the next tutorial in the series but its a good option for dealing with risks that have a large potential impact Job Function Email List as long as you can find an affordable policy. Accept the Risk As weve seen risk management comes at a price. Avoiding a risk means constricting your companys activities and missing out on potential benefits. Reducing a risk can involve costly new systems or cumbersome processes and controls. And transferring a risk also has a cost for example an insurance premium. So in the case of minor risks it may be best simply to accept them.
Theres no sense investing in a whole new suite of expensive software just to mitigate a risk that wouldnt have had a very big impact anyway. For the risks that received a low score for impact and likelihood look for a simple lowcost solution and if you cant find one it may be worth simply accepting the risk and continuing with business as usual. The advantage of accepting a risk is pretty clear theres no cost and it frees up resources to focus on more serious risks. The downside is also pretty clear you have no controls in place. If the impact and likelihood are minor that may be fine.