Where the Risk Management Team intends to mitigate a risk factor, the following are the set criteria, adopted by HD Faculty in this regard:
- Establish fix paradigms and make actions specific.
- Define and delineate trigger points that start preparations and actions.
- Calculate approximately the timeframe and resources required to support tactics.
- Calculate approximately how much, and the frequency of the risk event and impact by which it will decrease, if the plans are successful.
- Assess cost efficiency of the proposed risk reduction tactic, and its consequences.
- Assign a Risk title-holder to implement the tactic.
- Decide how to monitor the plan to know whether it is achieving its objectives.
As part of the process of identifying mitigation tactics or internal controls, HD Faculty is required to ensure that the controls it chooses are not more costly than the potential cost to HD Faculty, if no controls were put in place.
The steps and calculation below assist HD Faculty in balancing the anticipated benefits of reducing identified risks with the cost of controlling them.