It is necessary to design new business process with sufficient risk control measures from the beginning. and occasionally reassess risks are an ongoing process. Another way is transferring risks to an external party such as to insurance company. It can be avoided risk altogether by closing down a high risk section of the organization. Once risks have been identified it is required to withdraw from not becoming involved. Risk retention is accepting the risk. Some of the risks involve trade-offs that are not acceptable to the management making risk assessment decisions.
As an example for risk avoidance not flying in order to take the risk that airplane can be hijacked. It seems avoidance is the answer to all risks but in that way no profits can be gained.
Hazard avoidance is referred to avoid risks in the business activities. The most effective way of preventing hazards is elimination of hazards. This is costly and not practical so the other way is risk reduction. Reduction of risk is reducing severity of the loss. It is necessary to find balance between negative risk and benefit of the activities.
Outsourcing can be applied as risk reduction . As an example company can outsource its manufacturing of goods to another company and handling business management only. This way company can concentrate on business development without having to worry much about production process.
Current risk assessment plan should be changed with following suggestion in order to avoid risks and also to minimize the loss.
- All workers should be insured with different insurance covers such as Accident Cover, Critical Insurance Cover and Health Cover and a competent Consultant should be appointed to looking after this functions and advise the management.
- Periodical medical checks must be done for the employees.
- One employee must be assigned to see that all fire extinguishers and alarming systems are working properly and employees must be trained to teach them what action must be taken in the event of a fire.
- Purified water must be provided for employees for drinking purposes.
- Periodical checks must be done to see that working areas are properly illuminated and exhaust fans are working properly.
- Medical doctor must be appointed to look after the health hazard and advise the management on possible risks.
- Make compulsory for workers to wear helmets in construction areas and proper notices must be displayed in construction areaS to state that construction work is going on.
- Quality electrical items should be fitted in the work place and there should an experienced electrician to attend to electricity problems.
- First Aid training program must conducted to all employees.