Which Of The Following In The Best Choice When Handling Risk?


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Neal Widdows Profile
Neal Widdows answered
Risk deduction and residual acceptance is most probably the best idea. Out of risk avoidance, total risk acceptance, risk deduction and residual acceptance, and transferring risk, each has their own pros and cons. I would say risk avoidance and transferring risk are the two weakest ideas, because with risk avoidance there is always the chance that, however much you try and avoid risk, it can always happen unexpectedly and therefore this could be an irresponsible way of handling risk.

While it may be the easier option, transferring risk is equally as dangerous because by simply transferring risk, in the long run you are simply passing on the risk to a different area. This is equally as irresponsible as hoping to avoid risk all together. It could make an area that is already risky even more so, jeopardizing the activity and potentially ending it very badly.

Total risk acceptance is a slightly better idea, although this still has its cons because although accepting the risk means that you acknowledge it and realize it is yours to deal with, it is still accepting the risk rather than trying to preventing it, which is the key thing.

Risk deduction and residual acceptance is the best idea simply because it at least shows that you have attempted to lessen the risk, rather than simply hoping that it never happens. It also shows that although you tried to reduce the risk, when something does go wrong you are willing to accept that you tried your best to dramatically reduce the chance of something happening. Although this may be the best idea, it still has its cons in that you have not totally reduced the percentage of a risk happening and this shows because of the willingness to accept that risk could still happen.
Anonymous Profile
Anonymous answered
A.    Risk avoidance
b.    Total risk acceptance
c.    Risk reduction and residual acceptance
d.    Transferring risk

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