Chapter 5 - Mitigation Strategy Development

Abstract

This chapter discusses the various types of risk mitigation strategies. The risk mitigation process and the IT risk mitigation are also described. The four standard choices of the types of risk mitigation strategies are: acceptance, avoidance, limitation, and transference. The risk acceptance is part of risk management. The most common reason why companies may choose risk acceptance in certain situations is that the cost of other risk management options, such as avoidance or limitation, may outweigh the cost of the risk itself. Risk avoidance is the opposite of risk acceptance as it's an all-or-nothing kind of stance. In business continuity and disaster recovery plans, risk avoidance avoids any exposure to the risk whatsoever. It is the most expensive of all the risk mitigation strategies, but reduces the cost of downtime and recovery significantly. Risk limitation is the most common risk management strategy employed by businesses. It includes installing firewalls to keep the networks safe, creating backups to keep data safe, and practicing fire drills to keep the employees safe.