a. Risk Avoidance: This requires one to stay away from implicative activities. However, this only minimized the risk, it does not eliminating it.
b. Risk Reduction: These are the steps taken by the company management to deal with real and perceived risks. They are not expected to eliminate the risk, but minimize the chance of its occurring.
c. Risk Transfer: This is the shifting of a risk from one party to another for example, by insuring property.
d. Risk Retention: When the probability of risks occurring is very less, or the costs of mitigating the risk, this is the only way out. Additionally, in some businesses transferring the risk may be prohibitive, and the business has to consider risk retention.
2. List and briefly describe the seven steps in the risk management process as tabled in the ISO31000 International Risk Management Standard (2009).
a. Avoiding the risk by deciding not to start or continue with the activity that gives rise to the risk.
b. Taking or increasing the risk in order to pursue an opportunity.
c. Removing the risk source.
d. Changing the likelihood.
e. Changing the consequences.
f. Sharing the risk with another party or parties (including contracts and risk ﬁnancing).
g. Retaining the risk by informed decision.
3. Describe the responsible of the risk manager and the risk manager’s position within the organization.
a. Responsible of risk manager:
This position has overall responsibility for the organization’s risk management function, providing advice and counsel to the executive team and the business unit who ultimately own accountability. With a focus on process, identifies opportunities to mitigate or eliminate various types of risk by reviewing and/or developing, and executing...