While organizations use various strategies or techniques to deal with risk and its financial consequences, risk reduction and risk transfer are the two basic methods in vogue to handle risks, particularly the pure risks. Risk reduction is the process undertaken by an entity to reduce the risk exposure and thereby decrease the frequency, severity and unpredictability of losses. The case deals with the success story of an organization in implementing risk-reduction activities.

"Risk Management is the logical development and execution of a plan to deal with potential losses faced by individuals and organizations""Risk Reduction has five structured and systematic steps - threat identification and rating; asset - value assessment; vulnerability assessment; risk assessment and formulating options"

M/s Tribal Cooperative Corporation (TCC), Visakhapatnam, an organization established basically for the welfare of girijans (tribals) living in the forest/hilly areas of Vizianagaram, Visakhapatnam and other north coastal districts of Andhra Pradesh, has its net work of about 1,079 and odd forest produce collection centers—strategically located in the reserved forest area, spread over 690 sq. miles.

The core business operations of the organization and its collection centers include collective purchase of complete range of various forest products like seeds, fruits, roots, honey, leaves, etc., from the tribal people, in whose natural habitat such resources were plenty once upon a time and transporting them for processing and marketing at the mandal and district headquarters and marketing the same to consumers through various outlets at urban and semi-urban centers.

Insurance Chronicle Magazine, Risk Reduction, Risk Management, Tribal Cooperative Corporation, TCC, Insurance Policies, Financial Services, Operational Management, Risk assessments, Business Operations, Insurance Companies, Marketing Strategies.