Unit -3

Last topic- option estrategias to motivate the risk

Effective Risk Mitigation Strategies

Identifying risk is an important first step. It is not sufficient though.

Taking steps to deal with risk is an essential step. Knowing about and thinking about risk is not
the same as doing something about risk.

Risk will occur. Some good, some bad. Some minor, some catastrophic. Your ability to mitigate
risk allows you to proactively acknowledge and accommodate risks. Let’s talk about four
different strategies to mitigate risk: avoid, accept, reduce/control, or transfer.

Avoidance

If a risk presents an unwanted negative consequence, you may be able to completely avoid those
consequences. By stepping away from the business activities involved or designing out the
causes of the risk you can successfully avoid the occurrence of the undesired events.

One way to avoid risk is to exit the business, cancel the project, close the factory, etc. This has
other consequences, yet it is an option.

Another approach is to establish policies and procedures that assist the organization to foresee
and avoid high-risk situations. By not starting a project that includes a high unwanted risk
successfully avoids that risk.

Acceptance
Every product produced has a finite chance of failing in the hands of your customer. When that
risk is at an acceptable level, sufficiently low estimated field failure rate, then ship the product.
Accept the risk.

When the decision to accept the risk is in part based on an estimate or prediction, there is the risk
the information incorrectly forecasts the future. Therefore, for high consequence related field
failures, closely monitoring field performance or establishing early warning systems may be
prudent.

Reduction or control
FMEA, hazard analysis, FTA, and other risk prioritization tools focus help you and your
organization identify and prioritize risks. Reducing the probability of occurrence or the severity
of the consequences of an unwanted risk (say product failure) is a natural outcome of risk
prioritization tools.

If it is not possible to reduce the occurrence or severity, then implementing controls is an option.
Controls that either detect causes of unwanted events prior to the consequence occurring during
use of the product, or the detection of root causes of unwanted failures that the team can then
avoid.

Controls may focus on management or decision-making processes. Improving the ability to find
design flaws or to improve the accuracy of field failure rate prediction both improve the ability to
make the appropriate decisions concerning risk.

Finally, unwanted events or high field failure rates will occur. Think through both how you will detect the
onset of the event and how to respond. 

Transference
This strategy is to shift the burden of the risk consequence to another party. This may include
giving up some control, yet when something goes wrong your organization is not responsible.

This approach may not work to protect your brand image if the product is associated with your
organization. Even if the power supply vendor pays for all damages due to failures in their unit, the
customer only knows that your product has failed and caused damage. Use this approach with caution.

Summary of Risk Mitigation Strategies

Avoid, accept, reduce/control, or transfer. For each risk you encounter, you and your
organization will have to deal with it. A little forethought and work enable more options than just
a major product recall or bankruptcy filing.

Within your organization’s risk management framework there should be both aware of the
various strategies along with understanding the guidelines for their implementation.