THE METHOD OF HANDLING RISKS
The methods used to handle the risks depend on the nature of the person or entities are facing the risk that. One or more of the following ways can be used to handle a specific risk.
-avoid the risk.
-prevent and control risk.
-hold the risk; and,
-move the risk.
Avoid The Risk Of
One cannot avoid the whole risk, but in some ways he can avoid certain risks. However, although avoiding the risk it might be, but often not profitable. One can avoid the risk of drowning by avoiding the water. This of course means avoiding all forms of transport of water or near water, such as a boat, boat, water skiing, swimming and all kinds of water sports. For the full course as well.
One can avoid the risk of loss against certain goods by road do not have such items and not responsible. That's why there are people who prefer renting rather than buying it.
Prevent and control Risk
It has been described above that some risks can be avoided by pulling off themselves from the activities relating to the risks. So, someone who doesn't ski will not suffer the risks of skiing accidents. So he dodged.
However, if he wants to also go skiing despite any risks, then it can
take steps to reduce the possibility of injury it e.g. by following the
ski lessons and exercises program. This is controlling the risk. However, consider that the risk of injury is still there, the loss still may occur.
The magnitude of the loss is a function of the frequency and severity of accidents, fires and other incidents that damaged or destroyed property or kill or injure people. Frequency means how many times the event occurred for example how many times injuries or fires that occur in a factory during a specific time period. Severity is the size of the severity of the damage caused by accidents, fires or other events suffered an enterprise during a certain period of time depending on how many times the event occurred and how much damage each of the events, so dependent on the frequency and severity.
The goal of prevention and control of losses is eliminating any loss, or if it doesn't work, reduce the losses to the minimum possible.
Withstand Risks
Hold the risk means the risk of possible loss to bear. This may happen when someone who is open to the risk of it not even knowing it. So, the risk it poses no concern so ignore her. Many people who care about the possibility of a loss because he was not aware of the occurrence of the loss the loss of it. Millions of people hold the risk of cancer with a cigarette because it does not know of any risk it. Many people rationalize (alleged) this consider it with risk bearer no some people detained because of risks taken lightly.
There are also things where some or all of the risk of it on hold after careful consideration through analyzing him. How to bear the brunt of this loss is to regard it as a cost of operations of the company. There are also ways in which the company was formed a fund or reserve for losses of loss-payer truly suffered. Such reserve funds or may take the form of cash or assets easily or immediately redeemable. How can this be called "insurance on its own."
Move The Risk
The most important way to move risk is insurance. With insurance, a person or company specific risk moving or shifting shouldered his insurance company by paying a premium.
