Risk Mitigation

Risk Mitigation

Remember the first Rule "Donít risk more than you can afford to lose" and the second Rule "Donít risk a lot for a little" and the third Rule "Consider the odds" of Risk Management from Mehr and Hedges!

The risk policy measure of risk mitigation improves corporate risk situation in that through technical or organisational measures, the occurrence probabilities of higher damage sizes for a risk are minimised. This can be achieved either through measures that leave the risk with lower occurrence probability, or measures can be implemented to the effect that the risk on occurrence results in less damage compared to before the implementation of the measure.

So the challenge for a Risk Manager is to reduce the expectancy value T{R(x)i(mean)} or the possible maximum loss T{R(x)i(worst)} as far as economically reasonable.

 

Our Enterprise Risk Manager Software supports you by calculation of the expectancy values T{R(x)i(mean)} and T{R(x)i(worst)} for each product and for each product line.

 

Risk Optimization