Risk protection is a strategy that employs redundancy in order to mitigate a ris

Question

Risk protection is a strategy that employs redundancy in order to mitigate a risk. An example would be a commercial airliner that has a manual override switch for the autopilot functionality. Risk transfer is a strategy that shifts the risk to another person, group, or organization. An example would be discontinuing the online help features in a new software application to save development time and money. The risk is transferred to the help desk personnel and their ability to handle the phone calls from customers. Discuss how you have used or might use risk protection and risk transfer in a situation at work. Compare these two risk resolution strategies. Post your thoughts in the discussion area.

Explanation / Answer

Risk is something which can be gained or lose. Risk need to be protected as it is the basic fundamental of any business is, the more the risk the best you earn. Risk has to be protected by various means. When we consider an example, Health insurance, under this system the health is protected by a insurance company. If you are facing any health complications or if you are dead (natural or accidental), your health is protected by the insurance company.When we talk about the working environment risk protection can be done by providing the insurance policies of employees which safe guards the company, if the employee is hurt in an accident the company will be protected.

Risk Transfer one of the important functions of any business, and mostly every organisation tries to maintain in their organisations. The best strategy to reduce your liability by transferring your risk to some others. We can consider many examples, such as out sourcing which makes your risk transfer to other organisations.

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