MANAGEMENT

Detailed explanation-1: -Business risk cannot be entirely avoided because it is unpredictable. However, there are many strategies that businesses employ to cut back the impact of all types of business risk, including strategic, compliance, operational, and reputational risk.

Detailed explanation-2: -While it’s impossible to eliminate all risks, a risk avoidance strategy can help prevent some losses from happening. It’s an important part of any risk management plan and a way to protect your organization’s assets from potential losses.

Detailed explanation-3: -If and when a risk becomes a reality, a well-prepared business can minimize the impact on earnings, lost time and productivity, and negative impact on customers. For startups and established businesses, the ability to identify risks is a key part of strategic business planning.

Detailed explanation-4: -There is a risk to every business decision you make. So, instead of relying on gut instinct, it’s a good idea to use risk management to guide your business decisions. Understand what risk management is and the types of risk that could affect your business.

Detailed explanation-5: -Risk is avoided when the organization refuses to accept it. The exposure is not permitted to come into existence. This is accomplished by simply not engaging in the action that gives rise to risk. If you do not want to risk losing your savings in a hazardous venture, then pick one where there is less risk.