What does risk mitigation primarily involve?

Risk mitigation primarily involves implementing strategies to reduce risks. This approach focuses on identifying potential risks, assessing their impact, and then applying various techniques to minimize or control those risks effectively. The goal is to lower the likelihood of adverse events occurring and to lessen the consequences if they do happen.

This can include a range of actions such as enhancing processes, establishing controls, and developing contingency plans. For example, a company may implement training programs to reduce human error, invest in technology to bolster security measures, or create a robust communication plan to handle crises effectively.

Other choices, while they might play a role in an overall risk management strategy, do not encapsulate the core of risk mitigation as effectively. Increasing the amount of insurance is a financial strategy that transfers risk rather than mitigates it, conducting more frequent audits is a method of monitoring and oversight rather than directly reducing risks, and outsourcing risk management can involve delegating responsibilities but does not inherently address the tactics to mitigate specific risks. Thus, the focus on implementing strategies captures the essence of mitigating risks themselves.