5.74 Following the identification and analysis of risks, the generation of an expected value, and an assessment of options' exposure to uncertainty, appraisers need next to look at strategies to prevent and mitigate risks and uncertainties. The following may be adopted:
❑ Consulting early;
❑ Avoiding irreversible decisions;
❑ Carrying out pilot studies;
❑ Building in flexibility from the start;
❑ Taking precautionary action;
❑ Transferring risk through contractual arrangements (insurance being an example);
❑ Developing less risky options, such as making less use of leading edge technology;
❑ Reinstating, or developing different options; or,
❑ Abandoning the project because it is too risky.
5.75 Annex 4 provides more information on what mitigating action might be taken both before and during implementation.