Question

2. Discuss how to mitigate the risks. Give examples.

Answer 1

Avoidance- If a risk has an unintended negative impact, then you might be able to prevent those effects entirely. You may successfully avoid the occurrence of undesired events by stepping out of the business activities involved or by designing the causes of the risk.
One way of reducing danger is to leave, cancel the plant, close the factory, etc. That has other consequences, but it is an option. Another solution is to develop policies and procedures to assist the company in anticipating and preventing hazardous situations. By failing to start a project that involves a high unwanted risk, the risk is avoided successfully.

Acceptance- Each product created in your customer's hands has a finite risk of failing. When that risk is at an appropriate level, the expected rate of field failure is sufficiently small, then ship the product. Accept threat. If the decision to accept the risk is partly based on an assumption or forecast, there is the possibility that the knowledge incorrectly forecasts the future. Therefore, it may be wise to closely track field performance or develop early warning systems for high-consequence related field failures.

Reduction or control- If the frequency or severity can't be minimized, then enforcing controls is an choice. Controls that can predict causes of unwanted events before the outcome occurs during the product's use, or predict root causes of unwanted failures that the team can then prevent. Management or decision-making processes may be the subject of controls. Improving the ability to detect design defects or increase the accuracy of field failure rate prediction both strengthen the ability to make reasonable risk decisions.

Transference- This technique is to transfer the risk effect burden onto another group. This will involve giving up some influence but the company is not responsible when anything goes wrong. If the product is associated with your organisation, this approach may not work to protect your brand image. Even if the manufacturer of the power supply pays for all losses because of faults in their device, the consumer knows only that the product has failed and caused harm. Using the method cautiously