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avoidance, transfer, and reduction

Risk management:

In what business situations would the methods of avoidance, transfer, and reduction/mitigation apply? Identify two situations for each of these and explain and justify your approach.

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Risk Avoidance: Risk avoidance is the simplest approach to reducing problems. It generally means not doing the things that could lead to the problem occurring. Unfortunately, risk avoidance may mean avoiding doing anything new, and hence not being able to benefit fully from business opportunities.

For example, a decision to abandon a new information technology project in the organization to avoid risks, such as risks related to failure of technology to serve the desired purpose, risk of resistance among the employees, etc. ...

Solution Summary

In what business situations would the methods of avoidance, transfer, and reduction/mitigation apply? Identify two situations for each of these and explain and justify your approach.

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