What does mitigation refer to in risk management?

Mitigation in risk management specifically refers to the steps taken to reduce the likelihood and impact of risks that could potentially affect an organization. This involves identifying potential risks and implementing strategies to minimize their effects. Mitigation can include measures such as improving processes, enhancing security measures, providing staff training, and developing backup plans to handle risks effectively.

For instance, an organization may implement new technology or processes to improve operational efficiency and reduce the risk of system failures. Engaging in mitigation ensures that organizations proactively address potential threats rather than simply transferring, accepting, or ignoring them, all of which do not focus on reducing risks directly.