Once
risk are identified and evaluated the organization is faced with a range of
actions.
risk are identified and evaluated the organization is faced with a range of
actions.
Options
are:
are:
·
Accept the risk-do nothing and hope for the best-not really recommended
except for low-impact/low-likelihood risk which are classed as Residual risk.
Accept the risk-do nothing and hope for the best-not really recommended
except for low-impact/low-likelihood risk which are classed as Residual risk.
·
Manage the risk-reduce the risk-by, for example:
Manage the risk-reduce the risk-by, for example:
i.
Raising staff awareness of risk
Raising staff awareness of risk
ii.
Establishing physical measures such as improved security
Establishing physical measures such as improved security
iii.
Diversifying computer system instead of having one complex one
Diversifying computer system instead of having one complex one
iv.
Active development of new products and markets
Active development of new products and markets
v.
Strengthening internal controls
Strengthening internal controls
vi.
Developing quality control over products of goods, production of services
Developing quality control over products of goods, production of services
vii.
Good staff recruitment and training policies
Good staff recruitment and training policies
·
Transfer the risk-by insurance, subcontracting, outsourcing
Transfer the risk-by insurance, subcontracting, outsourcing
·
Avoid the risk-don’t allow the organization to engage in high-risk
activities. For example, if trading in a volatile country where there is a risk
of government interference instead of funding the operation from say the UK or
the USA use local finance and local management and suppliers wherever possible,
thus mitigating the effects of possible nationalisation, import controls, etc.
Avoid the risk-don’t allow the organization to engage in high-risk
activities. For example, if trading in a volatile country where there is a risk
of government interference instead of funding the operation from say the UK or
the USA use local finance and local management and suppliers wherever possible,
thus mitigating the effects of possible nationalisation, import controls, etc.
