company management elects to cancel production. Which of the following risk strategies is the company using in this scenario?
company management elects to cancel production. Which of the following risk strategies is the company using in this scenario?
When company management decides to cancel production, they are employing the risk strategy of avoidance. Risk avoidance involves taking actions to completely eliminate the exposure to a risk. By canceling production, the company is eliminating the risk associated with that production entirely.
i think its avoidance. They are cancelling a product that seems to carry lot of risk. If they did nothing (acceptance) then they would continue production with no changes to the process
Acceptance in risk management involves acknowledging the existence of a risk and deciding not to take any action to mitigate it. In this case, canceling production indicates that the company has accepted the risk rather than attempting to avoid, mitigate, or reject it. This decision could be due to various factors such as the severity of the risk, cost considerations, or lack of feasible alternatives in the given situation.