Four answers to one risk
A café has a risk: its card machine could be stolen.
The owner could live with it. She could buy insurance. She could stop taking cards. Or she could bolt the machine to the counter.
Those are the four ways to answer any risk.
By the end of this lesson
Note
I can choose accept, transfer, avoid or mitigate for a risk and give a reason.
Key words
| Word | What it means |
|---|---|
| Accept | decide the risk is small enough to live with |
| Transfer | pass the risk to another party to manage or pay for |
| Avoid | change the plan so the risk cannot happen |
| Mitigate | lower the likelihood or the severity with controls |
| Residual risk | the risk that is left after controls are in place |
| Insurance | paying a company to cover a loss if it happens |
| Outsourcing | paying another company to do a job for you |
The cells students fill in are left blank in this preview.
Starter
Have a go
Starter
3 questionsYour answers are marked here and are not kept. A college account keeps every student’s marks.
The four responses
Accept. The impact is acceptable because there is no fix, or because you have applied a fix and some risk is left.
Transfer. Pass the risk to someone else to manage, lower or pay for.
Avoid. Change the project or system so the risk is gone.
Mitigate. Use controls to lower the severity or the likelihood.
The café and its card machine
| Response | What the owner does |
|---|---|
| Accept | Does nothing more, because the machine is cheap and replaced free |
| Transfer | Buys insurance, or hires a company to run the card service |
| Avoid | Stops taking cards and takes cash only |
| Mitigate | Bolts the machine down and uses a camera |
The cells students fill in are left blank in this preview.
Check
Have a go
Check
3 questionsYour answers are marked here and are not kept. A college account keeps every student’s marks.