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The differences between risk trade-off and risk mitigation is risk mitigation strives to reduces risk that materializes. risk mitigation is performed only after the damage occurs, the strategies for mitigation should be communicated across the organization and pre planned so that it can be properly implemented during the time of a crisis.
risk trade off is used way before the risk actually occurs and is the process of coming up with a backup plan to deal with the risk if things go wrong.
example: , Any Organisation may introduce a new product to the potential market with the hope that the product will not face much competition till one year’s time . However, a competitor releases an identical product to the market before 1 year or within 6 months. The company should have done some contingency planning to determine what steps could be taken in the event that such a situation materializes.
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Jun 22nd, 2015
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