Businesses can employ several strategies to manage interest rate risk: 1. Hedging: Utilizing financial instruments like interest rate swaps, futures, and options can help mitigate the risk. 2. Diversification: Spreading investments across different interest-bearing assets can reduce exposure to any single source of risk. 3. Matching: Aligning the maturities of assets and liabilities can help balance the impact of interest rate changes. 4. Fixed vs. Variable Rates: Choosing a mix of fixed and variable-rate financing based on market conditions and forecasts.