What does the term "risk mitigation" signify?

The term "risk mitigation" refers specifically to the implementation of strategies designed to reduce either the impact or the likelihood of risks. This concept is central to risk management practices as it focuses on minimizing the potential negative effects that risks can have on an organization and its objectives. Risk mitigation can involve a variety of techniques, such as implementing security controls, conducting regular training, creating comprehensive policies, or employing technology to safeguard information.

It is important to distinguish risk mitigation from other options. Ignoring potential risks would not address the issue at all, while removing all risks from the environment is impractical, as some level of risk is inherent in any operation. Transferring risks to other entities, such as through insurance or outsourcing, is a separate risk management strategy known as risk transfer, rather than mitigation. Each approach has its place in a comprehensive risk management strategy, but risk mitigation specifically targets the reduction of risk impact or likelihood.