Explain how a business can deal with various risks.

      

Explain how a business can deal with various risks.

  

Answers


John
1. Avoidance.
This is the best means that a company can use to control loss. This involves completely eliminating a threat.
2. Loss prevention.
This technique of dealing with a risk that does not eliminate but instead it limit the loss. It attempts to minimize a given loss caused by a risk.
3. Separation.
This is a technique of risk control which involve dispersing the business assets in different locations so that when a loss occurs at one location the impact to the given business is only limited to the assets at that location.
4. Duplication.
It essentially involve the creation of backup plan. It is often important in technology. A failure with information system server should not affect the backup server. It should be availed for access in event of failure.
5. Diversification.
This risk control technique allocates business resources to create multiple levies of business that likely offers a variety of goods and services in different industries. If there is diversification then a significant loss from one line of business will not cause any harm to organization bottom line.
Jonmhumble answered the question on November 14, 2017 at 11:57


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