DE-RISKING

De-risking initiatives seek to lower the level of risk incurred by an organisation. This is achieved by reducing exposures, preventing the materialisation of threats, or reducing negative outcomes. As such, a de-risking approach is an active and conscious process that aims at decreasing the likelihood and potential impact of risks.

It does not mean that risks are to be avoided or fully eliminated. Instead, the implementation of a de-risking approach can improve the overall risk profile of an organisation and strengthen the risk taking process. It can also help bringing intolerable risks into acceptable levels.

An important component of naval operations and strategy consists in managing risks and, when possible, de-risking situations to prevent negative implications, both in peace and wartime.