Risk remedies and treatment by Derek Hendrikz. Covers risk management, acceptance, transfer, mitigation, retention, ACAT, avoidance, control... www.derekhendrikz.com

1. Copyright © 2008 Derek Hendrikz Consulting
derek hendrikz
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2. Copyright © 2014
Derek Hendrikz Consulting
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3. Take the RISK
or
Don’t take the Risk!!!
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4. Risk
Management
Take the Risk
Retain Mitigate
Don’t take
the Risk
Transfer Avoid
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5. www.derekhendrikz.com

6. • Avoidance (Eliminate)
• Control (Mitigate)
• Accept (Retention)
• Transfer (Outsource or Insure)
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7. …most effective way of risk management … implies not
taking the risk at all or not performing the activity that
could carry risk…
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Risk Avoidance

8. …avoidance has a weakness… ‘NO RISK = NO RETURN’
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Risk Avoidance

9. …risk control involves methods that reduce the severity of
the loss or the likelihood of the loss form occurring… it
thus mitigates…
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Risk Control

10. …risk retention is accepting the loss when it occurs… an
acceptable practice if the cost of insurance is greater than
the possible total loss sustained…
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Risk Acceptance

11. …all risk that is not avoided or transferred is retained by
default… war is an good example of non- retained, non-
avoided risk resulting in risk retention…
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Risk Acceptance

12. …risk transference is a process of shifting the
responsibility or burden to another party or individual,
which is mostly done through legislation, contract,
insurance or other means…
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RiskTransference

13. …it can also refer to the shifting of a physical risk or part
thereof elsewhere…
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RiskTransference

14. …insurance as method of risk transfer is often seen as
incorrect since it is a post-event compensatory method
(yet the risk of compensation is still transferred)…
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RiskTransference