Risk Management Techniques

Four basic risk management techniques are

Avoidance - Whenever an organization/individual does not posses the capacity to handle the risk while ensuring a high degree of safety, it should choose avoidance as a risk management technique.

Loss Control/Risk Reduction- Loss Prevention & Loss ReductionØ

Retention - This is used when either the organization/individual possesses the capacity to face the consequences of risk or has no other option to mitigate risk.

Risk Transfer- Risk sharing involves sharing risk with another organization through a contract. 

Guess what type of risk management technique is insurance!!!

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