Risk Mitigation

Name: Risk Mitigation
Author: Andrew Kovacks

Preparing for threats to your business

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Course: On-Demand

(contemplative tones) Welcome to risk mitigation. Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business. In these lessons, you'll learn risk mitigation methods and how to reduce or eliminate risks. Risk management is a process. First, you analyze the business to identify all the possible risks and determine the probabilities of each risk occurring. There can be unlimited possibilities, but the probabilities are based on the exposures and risks that you have identified. There will always be outliers, which are occurrences identified in possibilities. But the probabilities of such incidents occurring are minimal to non-existent. Let's look at an example in business supply chains. If your company's supply chain relies on trucks to move goods, a possible risk would be a vehicle accident and employee fatality. Now that we identified the possible risk, what is the probability? According to the National Safety Council, four fatalities occur every hour on the roads in the United States. Based on this data, the possibilities of your employee being involved in a fatal crash are quite high. This risk would be different depending on where your company is located, among other factors. For example, if your company is in the United Kingdom or United Arab Emirates, where traffic fatalities are statistically lower than the United States, the probability may be much lower. Although there may be numerous factors in this scenario, millions of people drive every day without experiencing a life or death situation. Some of these factors include location, the vehicle's condition, driver's condition and experience level, other drivers on the road and their experience level, road and traffic conditions and weather conditions. You want to ask yourself these questions. How do I reduce or eliminate the possibility or probability of suffering a loss? What can I do as an individual, company or government agency to mitigate or offset the risks? One way to mitigate or reduce the risk associated with using trucks to move your products would be to choose another method of distribution, such as using a third party for delivery, such as FedEx or UPS. This may be more costly, but you would avoid the risk of one of your employees getting hurt. Another would be providing a defensive driving course for all your drivers to ensure they have the skills to avoid collisions and training on how to react in different situations on the road. The cost of the course could be offset by lower insurance claims in the long run. As a risk manager, looking at historical information is critical to determining future courses of action. The simple fact is if an incident has never occurred, this does not mean it won't. So historical information is key, but not an absolute variable. It is essential to develop a plan, strategy, procedures and policies, while maintaining a flexible and adaptable mindset to an ever-changing and fluid environment. Use the information to create a plan that is proactive rather than reactive.

Advanced Provider : Andrew Kovacks 4 Lessons · 12m in Arabic, German, English, Spanish, French, Portuguese, Urdu, Chinese

Course Description

When you create or operate a business, certain risks come along with the territory. Managing risk begins with analyzing your business to identify all the possible risks and determine the probabilities of each risk occurring. Planning for possible risks can make the difference between success and failure. Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business. Transferring risks to another company such as an insurance company or hiring a third party for transportation are just a couple of ways businesses can mitigate risks. In this Risk Mitigation course, we will explore methods to reduce and mitigate risk. You’ll learn about creating a contingency plan and its importance in the event of emergencies, protection and recovery of assets. You’ll also learn how to define the lines of authority in your risk-mitigation plan. We’ll also discuss risk interactions and look at risk avoidance and controlling risks.

What You'll Learn

Assess potential risks by analyzing your business to identify possible risks and determine the probability of each occurring
Differentiate risk-mitigation methods, including risk avoidance, controlling risks, and transferring risks to another company
Discern authority figures and define the lines of authority in emergency situations within your risk-mitigation plan
Create a contingency plan for emergencies, protection, and recovery of assets
Examine risk interactions as part of mitigating and reducing risk

Key Takeaways

Managing risk begins with analyzing your business to identify all possible risks and determine the probabilities of each risk occurring.
Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business.
Transferring risks to another company, such as an insurance company, or hiring a third party for transportation are ways businesses can mitigate risks.
A contingency plan is important in the event of emergencies and for the protection and recovery of assets.
Defining the lines of authority is part of an effective risk-mitigation plan.

Frequently Asked Questions

What does this Risk Mitigation course cover?

The course explores methods to reduce and mitigate risk, including creating a contingency plan, protecting and recovering assets, defining the lines of authority in your risk-mitigation plan, risk interactions, risk avoidance, and controlling risks.

What will I learn to do by the end of the course?

You will learn to discern authority figures in emergency situations, assess potential risks, and differentiate risk-mitigation methods.

What lessons are included in this course?

The course includes Mitigating Risk Basics; Contingency Planning and Risk Mitigation Methods; Defining Authority; and a Test Your Knowledge assessment.

What is risk mitigation?

Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business, such as transferring risks to another company like an insurance company or hiring a third party for transportation.

What skills does this course help build?

The course builds skills in hazard mitigation, loss mitigation, mitigation, risk management, risk mitigation, and risk reduction.