Question

how to mitigate a risk in a business enterprise​

Answer 1

Explanation:

Everyone’s aware of risk as a threat to the financial health and operational continuity of businesses. But in order to limit your own business risk effectively, and ensure your approach is flexible and comprehensive enough to cover the full range of risk factors in good times and bad (especially bad), you need to:

Understand the different types of risk.

Perform a risk assessment to identify the risk factors most likely to affect your business.

Measure the potential impact of each potential risk and rank accordingly.

Develop contingency plans based on:

Risk Prevention (i.e., proactive preventative protocols, behavior, and training to reduce the chances specific risks and their consequences will occur).

Risk Mitigation (i.e., detailed strategies for minimizing the impact and cost of risks that do occur).

Risk Sharing (i.e., dispersing risk exposure between your company and third-party organizations).

Risk Acceptance or Risk Retention (i.e., acknowledging and accepting the risk in part or whole, as well as its impact on your business and any related costs or penalties).

Establish protocols to monitor risk levels at all times, identify new risks and changes to existing risk factors, and provide guidance in developing or modifying your action plans accordingly.

Answer 2

Understand the different types of risk.

Perform a risk assessment to identify the risk factors most likely to affect your business.

Measure the potential impact of each potential risk and rank accordingly.

Develop contingency plans based on:

Risk is an unavoidable part of doing business. It comes in an array of forms, each with their own unique potential for devastation, and although no business can hope to escape all of them unscathed, risk management provides companies with a set of strategic tools to limit the type and extent of risk they’ll suffer. This is true even during times of minimal disruption. But for those doing business during a global disaster—such as the COVID-19 pandemic—and attempting to navigate the potential recession that may follow, finding ways to mitigate business risk is crucial not just to growth or expansion, but to financial stability and survival.