What does a risk mitigation strategy aim to achieve?

A risk mitigation strategy is designed to reduce the likelihood or impact of potential risks. This means implementing measures that can either lower the probability of a risk manifesting or lessen the effect it would have if it were to occur. By addressing risks proactively, organizations aim to minimize potential disruptions, financial losses, or negative outcomes that could arise from uncertain situations.

This approach recognizes that while it may not be possible to eliminate all risks entirely, it is essential to manage them effectively to protect organizational assets, reputations, and overall operational integrity. It encompasses various actions like introducing controls, changing operational procedures, or utilizing insurance and other financial instruments to cushion against potential adverse effects. Thus, the primary goal is to maintain a balance where risks are accepted as part of business operations while endeavoring to keep their impact manageable.