Which is a risk control strategy?
• Amplification
• Rearrangement
• Reallocation
• Avoidance
• Avoidance
The risk control strategy out of the given options is "Avoidance."
The risk control strategy among the choices given is "Avoidance."
To understand this, let's break down the different strategies:
1. Amplification: Amplification is not a risk control strategy but rather a risk management technique. It involves increasing the potential impact of a positive event or reducing the potential impact of a negative event. It is not specifically focused on controlling or mitigating risks.
2. Rearrangement: Rearrangement is not a risk control strategy either. It refers to the process of reorganizing or reshuffling resources or factors to optimize their use or improve efficiency. While rearrangement can indirectly affect risk exposure, it is not primarily aimed at risk control.
3. Reallocation: Reallocation is also not a risk control strategy. It involves the redistribution of resources, funds, or responsibilities to different areas or activities, typically with the goal of improving overall performance. Like rearrangement, it may impact risk exposure but is not inherently designed for risk control.
4. Avoidance: Avoidance is a risk control strategy that involves taking specific actions to completely eliminate or avoid exposure to a particular risk. It is done by either eliminating the source of the risk or altering business processes to bypass or circumvent the risk altogether. Avoidance is typically chosen when the potential negative impact of the risk is significant, and it is not feasible or cost-effective to pursue alternative risk control measures.
In summary, among the given options, "Avoidance" is the risk control strategy. It is important to note that different risk control strategies may be applicable in different situations, depending on the specific risk factors involved and the goals and capabilities of the organization.