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.