Risk Reduction (limitation) is the most common risk management strategy used by businesses. This strategy limits a company’s exposure by taking some action. It is a strategy employing a bit of risk acceptance along with a bit of risk avoidance or an combination of both. An example of risk reduction would be a company accepting that a disk drive may fail and avoiding a long period of failure by having backups.
Related Terms: Risk Acceptance, Risk Avoidance, Risk Transfer, Risk Mitigation
