Implementing risk-handling techniques
Once we have identified risks, it is important to formulate a response. Approaches will differ, depending on a number of factors, including the organization's risk appetite and regulatory requirements. There are four main types of risk response, as shown in Figure 13.8:
Figure 13.8 – Risk response types
An enterprise should consider the following risk response approaches.
Transfer
When an organization wants to control or mitigate risk but does not have the resources (personnel or finances) to implement a response, then transference may be an appropriate strategy. If the organization cannot afford to rebuild the warehouse in case of fire, then they should consider fire insurance. If the organization does not have the personnel or infrastructure to support secure card payments, they may consider engaging a third party to process these payments.
Accept
When a risk is accepted, it is normally because...
