MANAGEMENT

Detailed explanation-1: -Mitigate – act to reduce the probability of occurrence or the impact of the risk. An example of this is choosing a different supplier. Accept – acknowledge the risk, but do not take any action unless the risk occurs. An example of this is documenting the risk and putting aside funds in case the risk occurs.

Detailed explanation-2: -A risk response strategy that generally reduces the probability or impact of the event without altering the project’s objectives is called. Avoidance.

Detailed explanation-3: -Since project managers and risk practitioners are used to the four common risk response strategies (for threats) of avoid, transfer, mitigate and accept, it seems sensible to build on these as a foundation for developing strategies appropriate for responding to identified opportunities.

Detailed explanation-4: -Risk response strategy #2 – Reduce What this means in ERM speak is to take steps to reduce the likelihood or impact of a loss. If the risk is just slightly above your appetite and tolerance level, then reduction is a reasonable strategy for bringing it down to within acceptable limits.