Risk Management

• Five basic techniques of risk management:

  • Avoidance

  • Retention

  • Spreading

  • Loss Prevention and Reduction

  • Transfer

  • Contracts
• Avoidance


  Times when it is not possible to completely avoid risk but the

  possibility should not be overlooked.
• Retention


  based on the likely frequency and severity of the

  risks presented, retaining the risk or a portion of the risk may be cost-effective even though other methods of handling the risk are available.
• Spreading


  Ex. Duplication of records and documents and then storing the duplicate copies in a different location
• Contracts


  These are often referred to as "hold harmless or

  indemnification" clauses.
• THE ESSENTIAL TOOLS OF RISK

  MANAGEMENT


  • Identify the tasks associated with the program or activity

  • Identify the hazards associated with each task

  • Evaluate and select risk management techniques

  • Assess the risks associated with the program or activity with the selected risk controls or transfers in place.

  • Determine whether to modify or proceed with the program or activity based on the risk assessment

  • "Frequency" and "severity"