Involves shifting the risk from the organization to another party. Only shifts the responsibility for risk’s financial consequences
3
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Contract Indemnity Clause
A contractual agreement where one party agrees to cover the other’s harm, liability, or loss stemming from the contract
4
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Risk Acceptance
Recognizing a risk and choosing to address it when it arises
5
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Exemption
Provision that grants an exception from a specific rule or requirement; Basically they’re breaking the rule and thats fine
6
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Exception
Provision that permits a party to bypass a rule or requirement in certain situations; Basically they aren’t manifesting that risk in the first place so the regulation is null and void
7
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Risk Avoidance
Strategy of altering plans or approaches to completely eliminate a specific risk
8
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Risk Mitigation
Implementing measures to decrease the likelihood or impact of a risk