What is a risk mitigation strategy?

A risk mitigation strategy is focused on reducing the likelihood or impact of a risk. This involves identifying potential risks, assessing their potential impact, and implementing measures to minimize either their occurrence or their effect should they occur. Effective risk mitigation can include a variety of approaches, such as enhancing security measures, improving processes, training personnel, or implementing new technologies.

The essence of risk mitigation is not to eliminate risks entirely—something that is often impractical—but rather to manage them to an acceptable level. By focusing on reducing the potential harm or the chance of a risk materializing, organizations can create a more resilient environment.

Other options represent different concepts that are not aligned with the definition of risk mitigation. For example, completely eliminating risks is generally unrealistic, and transferring risk to third parties refers more to risk transfer strategies, such as insurance, rather than direct mitigation. Ignoring potential risks runs counter to the principles of effective risk management, as it can lead to significant vulnerabilities within an organization.