Having identified and prioritized all the risks relating to a given transaction, typically, HD Faculty chooses one of four strategies, being (a) acceptance, (b) avoidance, (c) transfer or (d) mitigation (control) the risk.
(a) Risk Acceptance. Where the probability of occurrence and the impact of a particular risk are insignificant in comparison to the cost of controlling it, HD Faculty may choose to accept such a risk.
(b) Risk Avoidance. If the consequences of a particular risk could be devastating, and HD Faculty does not have the resources to mitigate it sufficiently, HD Faculty may choose to avoid such a risk.
(c) Risk Transfer. If the consequences of a risk can be severe, but the occurrence is very unlikely (for instance, in the case of. a fire on HD Faculty's premises), it only makes sense to transfer the risk to a third party, rather than bearing the cost of controlling such risk.
(d) Risk Mitigation (Control). When risks relate to the core business of HD Faculty, they are controlled internally. HD Faculty's risk mitigation strategies and solutions, in this regard for risk events that have a high possibility of occurrence, are dealt with in a cost-effective manner under the watchful eyes of HD Faculty's Risk Management Team.