Tag Archives: Tomlin Brian

The six ways of dealing with risk

3 Replies
Revised on: 2015-12-07

Classic risk management literature acknowledges four ways of dealing with risk after establishing a risk matrix:  Avoid, Reduce, Transfer and Retain or Accept. However, as it turns out, there are six ways, not just four ways to deal with risk, as the classic risk matrix indicates.  Two more are Exploit and Ignore. The former stems from Enterprise-wide Risk Management (DeLoach, 2003), while the latter is more of a sidenote in On the Value of Mitigation and Contingency Strategies for Managing Supply Chain Disruption Risks (Tomlin, 2006), but nonetheless an important observation.

Continue reading →

Risk Management: Contingent versus Mitigative

4 Replies
Revised on: 2015-09-08

The risk management literature separates between mitigative actions or strategies and contingent actions or strategies. It is important to keep these two perspectives apart. Why? Because risk management needs to address both sides of the risk: what lies behind the risk (source) and what lies in front of it (consequences). Here is my attempt at defining these two terms and explaining the differences, at least the way I see it, based on Asbjørnslett (2008), Tomlin (2006) and Jüttner et al. (2003).

 

Continue reading →