risk elimination
It is on a high note that most people do not differentiate between risk management and risk elimination. In a well-defined manner, risk management is essentially the process of assessing, identifying, and also controlling threats to the organization’s capital and earnings. The threats detailed in risk management are from different sources, which are inclusive of the legal liabilities, financial uncertainty, accidents, and natural disasters, and many other ways. Risk elimination on the other side can also be termed as risk avoidance, which is the ways of doing away the hazards, items, and the exposures which can negatively have an effect on the company’s assets.
For a risk elimination to be carried out, a strategy has to be designed so as to deflect as many threats as possible so as to have the avoidance of the costly and the disruptive consequences which can be experienced from a damaging event. The methodology in the risk elimination gets a good attempt at minimizing the vulnerabilities, which are threats posing. Most essentially, in carrying out of risk elimination in an organization, policy, and procedure, education and training and technological implementations must be put into place for personnel’s in a particular organization. For risk management, it allows an organization to have a good attempt to prepare for any unexpected harmful event; through this, the strategy entails minimizing the risks and extra costs earlier before them happening. Of the methods involved in risk management is financial diversification, which is one of the most used strategies.
As compared to risk elimination, which has shown that it is not possible to eliminate all the risks, risk management has some benefits on that it creates a safe and secure work environment for all of the staff and also the customers. It also provides protection from some of the events that can be detrimental to the organization and the environment.