ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Risk reduction deals with mitigating potential losses by reducing the likelihood and severity of a possible loss.

Detailed explanation-2: -Risk reducing measures include frequency reducing and consequence reducing activities, and their combinations. The measures may be of a technical, operational, and/or organizational nature. Choosing the types of measures is normally based on a broad evaluation, where risk aspects are considered.

Detailed explanation-3: -Loss Prevention and Reduction: When risk cannot be avoided, the effect of loss can often be minimized in terms of frequency and severity. For example, Risk Management encourages the use of security devices on certain audio visual equipment to reduce the risk of theft.

Detailed explanation-4: -Risk management strategy definition After identifying risks and assessing the likelihood of them happening, as well as the impact they could have, you will need to decide how to treat them. The approach you decide to take is your risk management strategy. This is also sometimes referred to as risk treatment.

Detailed explanation-5: -Mitigation includes reduction of the likelihood that a risk event will occur and/or reduction of the effect of a risk event if it does occur.