ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Common risk reduction mechanisms are security measures, policy enforcement, and employee education and awareness, as well as financial and legal positioning.

Detailed explanation-2: -Risk avoidance and risk reduction are both risk mitigation strategies. Risk avoidance means you’re trying to avoid compromising events as a way to eliminate liability exposures. Risk reduction is a way to help you control the damages to your business, like claims or losses.

Detailed explanation-3: -An example of risk avoidance might be a manufacturing business not using certain hazardous materials or chemicals due to the dangers of handling and storing them; or, an organization limiting the type of customer data it stores on its computers in case of a cyberattack.

Detailed explanation-4: -Creating and communicating policies. Implementing proper procedures. Leveraging the right technology to support the strategy. Training employees to assure that they behave in risk-appropriate ways. 01-Jul-2022