In risk management, what does a risk mitigation strategy involve?

A risk mitigation strategy is fundamentally concerned with reducing both the likelihood of a risk occurring and the potential impact it could have on an organization. This approach is proactive, aiming to lessen adverse effects through various measures such as implementing safeguards, strengthening security controls, or modifying processes.

For example, if an organization identifies that its network is susceptible to cyber-attacks, possible risk mitigation strategies might include enhancing firewalls, applying software patches, and providing employee training on security protocols. Such actions do not aim to eliminate all risks entirely, which is why the first option is not suitable. Risk can never be fully eradicated; rather, the objective is to manage and minimize it effectively.

Creating insurance policies, while a way to manage financial exposure from risks, does not directly address the risk itself but rather transfers the financial consequences of risks. This is why relying on insurance alone does not constitute a comprehensive risk mitigation strategy.

Furthermore, developing recovery plans post-incident is focused on responding to risks after they have occurred rather than actively preventing or reducing them in advance. Hence, while recovery plans are essential components of overall risk management, they do not belong to the proactive measures associated with risk mitigation.

In summary, a risk mitigation strategy is primarily about taking deliberate actions aimed at