Once the risk issues have been identified, analysed and assessed (see also para.
11.3.1), the efforts deployed to contain or reduce these risks form part of risk
management. Several strategies are available, including:
• Risk avoidance.
• Risk control.
• Risk assumption.
• Risk transfer.
Risk Avoidance. This strategy may be to choose a project alternative having a
lower risk from a range of alternatives. Although this might be the logical option,
there might be reasons or situations where it is not appropriate to do so, because
future options would be limited or design flexibility would be reduced.
Risk Control. This risk handling strategy is the most common one. Given the risk
parameters identified during the analysis, the approach is to carefully monitor the
critical parameters and apply corrective action as and when required.
Risk Assumption. This strategy is to consciously decide to take (accept) the risk,
generally because there may be an associated benefit. Carrying out activities in
sequence is risk free, but may take a long time. A shorter duration is possible if
some activities are carried out in parallel (concurrently), but the risk of doing one
activity badly exists, and is taken. Cooks who watch TV while cooking several
dishes accept the risk of producing slightly burnt food.
Risk Transfer. This strategy proposes to transfer or share the risk between several
people (contractors) or between contractor and purchaser. Taking or accepting a risk
involves a possible cost. Risk transfer has developed into the idea behind insurance,
and is reflected in contingencies. An insurer is willing, against a fee (insurance
premium), to accept a risk from a Client. Risk transfer can be beneficial to all parties.
12.2 Vulnerability
12.2.1 Disaster
The word disaster occurs in everyday language in diverse ways, to usually mean any
unexpected, sudden, or extraordinary event with negative impacts, whatever be the
number of people concerned, area or country affected.
Disaster events, even of different origins, have several features in common,
namely:
1. The origin of the damage or process is well defined, and the threats are
characteristic.
2. Although disasters may occur within known or defined zones, they can rarely be
predicted with accuracy and practically little warning time.
3. Direct losses take place mostly either, during or shortly after, the event.
12.2 Vulnerability
335
11.3.1), the efforts deployed to contain or reduce these risks form part of risk
management. Several strategies are available, including:
• Risk avoidance.
• Risk control.
• Risk assumption.
• Risk transfer.
Risk Avoidance. This strategy may be to choose a project alternative having a
lower risk from a range of alternatives. Although this might be the logical option,
there might be reasons or situations where it is not appropriate to do so, because
future options would be limited or design flexibility would be reduced.
Risk Control. This risk handling strategy is the most common one. Given the risk
parameters identified during the analysis, the approach is to carefully monitor the
critical parameters and apply corrective action as and when required.
Risk Assumption. This strategy is to consciously decide to take (accept) the risk,
generally because there may be an associated benefit. Carrying out activities in
sequence is risk free, but may take a long time. A shorter duration is possible if
some activities are carried out in parallel (concurrently), but the risk of doing one
activity badly exists, and is taken. Cooks who watch TV while cooking several
dishes accept the risk of producing slightly burnt food.
Risk Transfer. This strategy proposes to transfer or share the risk between several
people (contractors) or between contractor and purchaser. Taking or accepting a risk
involves a possible cost. Risk transfer has developed into the idea behind insurance,
and is reflected in contingencies. An insurer is willing, against a fee (insurance
premium), to accept a risk from a Client. Risk transfer can be beneficial to all parties.
12.2 Vulnerability
12.2.1 Disaster
The word disaster occurs in everyday language in diverse ways, to usually mean any
unexpected, sudden, or extraordinary event with negative impacts, whatever be the
number of people concerned, area or country affected.
Disaster events, even of different origins, have several features in common,
namely:
1. The origin of the damage or process is well defined, and the threats are
characteristic.
2. Although disasters may occur within known or defined zones, they can rarely be
predicted with accuracy and practically little warning time.
3. Direct losses take place mostly either, during or shortly after, the event.
12.2 Vulnerability
335