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.