Explain the risk management strategies, Risk Management

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Explain the Risk management strategies

Retain the risk

If risk is small and won't affect company's profits, company does very little and lives with it.

Avoid risk

Taking action to ensure all risk is avoided, but this would cost money and may inhibit growth which implies Invoicing overseas clients in sterling only.

Reduce risk

Ensuring the risk is minimised by training staff and having effective management control systems.

Transfer risk

Insurance and hedging, passes the risk to third party, buy costs money.

 


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