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Risk mitigation strategies can help your organization reduce the chaos and uncertainty of emergencies, natural disasters, and other common business risks. Many businesses struggle to understand where to start with risk mitigation. You shouldn’t overcomplicate it.
One of the core principles of risk mitigation is to make situations and decisions as straightforward as possible. That applies to your risk mitigation planning as well.
This article lays out the different types of risks your organization should consider. It then offers 10 risk assessment & mitigation strategies and best practices proven to work.
What is Risk Mitigation?
Your risk mitigation strategies are the processes and policies you put in place to reduce any risk level to your business. Usually, you will develop a plan to eliminate risk where possible, reduce it when not, and manage the different fallouts from that risk.
In their most recent report from 2019, the Enterprise Risk Management Initiative at NC State University found that 59 percent of all organizations surveyed felt the number of risks they faced was increasing. If businesses cannot control their risks, they can expect to see more incidents that negatively impact their operations and their bottom line. In addition, businesses that don’t properly manage their risk also become less attractive to customers and potential business partners.
Understand the Different Types of Risk
Before diving into risk mitigation planning, you first need to understand the different types of risks you need to plan for. Much of the online risk mitigation literature focuses on cybersecurity and financial security. Those are both incredibly important topics, but businesses need to think more broadly about all types of risks, including their physical security.
You need to think about three high-level categories of risk: strategic risks, external risks, and internal risks.
10 Risk Mitigation Strategies You Can Follow
Once you understand how to categorize risks, you can plan mitigation strategies. The general principles behind risk mitigation planning are well-established and readily available online. Instead, here we’ll focus on 10 concrete strategies and best practices any organization can adapt for its needs.
Get a free consultation from one of our experts on how to mitigate risks to your business assets, keys, and people.
About the Author
Vice President of Marketing
Jay oversees marketing and strategic partnerships at Real Time Networks and has over three decades of experience in leadership roles in the financial services and technology industries.