Risk response: Difference between revisions
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''Risk management.'' | |||
A choice in relation to an identified risk which can be categorised broadly as the decision whether to: | A choice in relation to an identified risk which can be categorised broadly as the decision whether to: | ||
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==See also== | ==See also== | ||
* [[Guide to risk management]] | |||
* [[Insurance]] | * [[Insurance]] | ||
* [[Reduce]] | * [[Reduce]] | ||
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* [[Risk reporting]] | * [[Risk reporting]] | ||
* [[Transfer]] | * [[Transfer]] | ||
[[Category:Financial_risk_management]] | [[Category:Financial_risk_management]] | ||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
Revision as of 21:56, 13 March 2021
Risk management.
A choice in relation to an identified risk which can be categorised broadly as the decision whether to:
- Avoid the risk, or
- Accept it.
The broad choice to 'accept' a risk can be further classified according to whether the firm then retains, reduces or transfers the risk.
Using this model, the classes of potential risk responses are therefore four, namely:
- Avoid
- Accept and retain
- Accept and reduce, or
- Accept and transfer.
