Risk control or reduction is an active measure that is used when a process is needed for continually monitoring and correcting the events, issues and conditions. This process involves first developing a risk reduction plan and then tracking its progress for specific risks. This mitigation strategy is the most common risk management technique. However, project professionals need to be cautious and not fall into adopting it as the de facto mitigation. Use of the risk assessment matrix is key to retaining perspective. As an example, this mitigation may be applied in an international project where the use of currency hedging is the agreed means to mitigate risk associated with external currency and exchange rate fluctuations.

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Risk control or reduction is an active measure used for continuously monitoring and correcting events, issues, and conditions. This process involves developing a risk reduction plan and tracking its progress for specific risks. It represents the most common risk management technique used by project professionals today. The risk reduction process involves two main steps. First, develop a comprehensive risk reduction plan by identifying specific risks, defining mitigation strategies, and setting clear objectives. Second, track the progress by monitoring implementation, measuring effectiveness, and adjusting the plan as needed. This creates a continuous feedback loop for ongoing improvement. Project professionals need to be cautious and not fall into adopting risk control as the default mitigation strategy. The use of a risk assessment matrix is key to retaining proper perspective. This matrix helps evaluate risks based on probability and impact, ensuring a balanced approach to risk management rather than relying solely on one technique. As an example, this mitigation strategy may be applied in an international project where currency hedging is the agreed means to mitigate risk associated with external currency and exchange rate fluctuations. By implementing currency hedging, project teams can reduce financial uncertainty and improve project predictability in volatile exchange rate environments. To summarize what we have learned: Risk control or reduction is an active measure that requires continuous monitoring and correction. It involves developing comprehensive risk reduction plans and tracking their progress. While it is the most common risk management technique, project professionals should avoid using it as the sole mitigation strategy. The risk assessment matrix is essential for maintaining proper perspective, and currency hedging serves as an excellent example of effective risk control in international projects.