Question

Define the four terms organizations use to describe risk management tactics.

Avoidance
Reduction
Sharing
Retention

Answer 1

Risk management tactics are strategies that organizations use to handle or address different types of risks they may face. The four terms used to describe these tactics are avoidance, reduction, sharing, and retention.

Step-by-step explanation:

Risk management tactics are strategies that organizations use to handle or address different types of risks they may face. The four terms used to describe these tactics are:

1. Avoidance: This involves taking actions to eliminate or avoid the risk altogether. For example, an organization may decide to stop offering a certain product or service that poses a high risk.
2. Reduction: This tactic focuses on minimizing the impact or likelihood of a risk. This can be done through implementing safety procedures, conducting risk assessments, or using protective measures.
3. Sharing: Organizations may choose to transfer or share the risk with another party, such as through insurance or contracts.
4. Retention: In this case, the organization accepts the risk and decides to bear the consequences if it occurs. They may have contingency plans in place to help manage and deal with the risk if it materializes.

By understanding these risk management tactics, organizations can make informed decisions about how to handle potential risks and protect their interests.