Managing Risk Through Acceptance and Assignment

Last week, we looked at risk mitigation. If you do something to reduce your vulnerability to a threat, or the impact of that threat, the risk goes down. Your personal firewall, your anti-virus system, the lock on your front door, and the umbrella you carry when it looks cloudy out are all examples of risk mitigation. It’s a very popular way to manage risk, and literal billions of dollars of the economy are people the world over mitigating trillions of dollars of risk. Mitigation very nearly always costs money, and frequently it’s the most cost effective way to manage one’s risk, but there are others. Today we’ll take a short look at two of them: Acceptance and Assignment.