The Importance of Risk Mitigation

Risk mitigation is where steps are taken to reduce the probability of or the impact of a negative risk to a project. When actions are taken to reduce risk, that is called risk mitigation implementation. With our solution, we empower lenders to mitigate risks before they become they cause a loss. The risk mitigation tools on our platform have saved our clients millions. Whether it's a project-specific risk or an industry-wide risk, our solution has a way to mitigate risks before they become losses.

No two projects are the same, therefore no two projects have the same risks. When conducting risk mitigation it's best to start by identifying potential risks to a project. There are five main strategies for risk mitigation and monitoring.

Accept the risk

In this strategy, team members identify the possible risks of a project and whether the consequences of the identified risks are acceptable. This strategy is often used to bring the risks to everyone else on the project, so there is an understanding of the risks and consequences.

Avoid the risk

This strategy presents and accepts the risks and consequences of a project. A method of implementing this strategy is to plan for the risk and then make plans to avoid it.

Control the risk

This strategy takes into account identified risks and the team takes actions to reduce or eliminate the impacts of the risk.

Transference of risk

In this strategy, one party may transfer the consequences to another party.

Monitor the risk

In this strategy, the team monitors the risks and consequences that may come up during the completion of a project.