managment presentation.pptx

1. Risk Avoidance
• It includes not performing an activity that could carry risk.
• Eliminate the cause of the risk
• Some hazards cannot be avoided but their risk may
Example:
• Risk that staff unfamiliar with development environment.
• Bring in expert training before heavy development starts.
• A project can, for example, be protected from the risk of
overrunning the schedule by increasing duration estimates.

3. Risk Transfer
• Risk transfer involves passing the risk to a
third party. This doesn't change or eliminate
the risk, it simply gives another party the
responsibility to manage the risk.
Example:
• Examples of risk transfer include insurance, warranties and
guarantees.

4. Cont…
• It is a risk management mechanism to shift
the responsibility of a potential unfavorable
outcome against any financial risks.
• The risk transfer is basically for future events,
which involves a contractual arrangement
between two parties, wherein one party pays
a premium to another party, to mitigate any
financial losses on account of any loss or
damage to the product