Response to the risk

Responses to minimize the risk.
There are several ways to minimize the risk;
1. Risk avoidance.
Either by removing of a particular threat or eliminating the source of risk. For example in removing the source of risk for contaminated land, the company create a better managed system related to the wasted materials so it doesn’t corrupted the land and building. And also for human error, the company stressed out the point how to work there for the workers so the workers will work accordingly, without creating any problems due to the human errors.
2. Risk reduction
When the risk is already occured, risk reduction may involve either lowering its probability or lessening its impact. For example in the company is that when the workers is pouring the chemical liquids from the barrel to the plactic bag. To reduce the damage of chemical reaction that irritates the skin, the workers use plactic glove.
3. Risk transfer
Insurance is the most popular technique for risk transfer in which only the potential financial consequences of a risk are transferred and not the responsibility for managing the risk. So in another words, this risk transfer is sharing the impact of the risk that being taken by the company with the third party. Sometimes the shared risk is about the financial impact of the certain accident.
4. Risk retention
In the case of planned risk retention, this involves the complete or partially assumption of the potential impact of the risk. In final, this risk reduction may only be cost-effective up to a point, thereafter becoming more costly than beneficial.