To mitigate risks, entrepreneurs can adopt several strategies:
1. Diversification: Spreading investments across different markets or products to reduce exposure to any single risk. 2. Insurance: Purchasing insurance policies to protect against specific risks, such as property damage or liability. 3. Contingency Planning: Developing plans to address potential emergencies or disruptions. 4. Financial Planning: Maintaining a robust financial plan with reserves for unforeseen expenses. 5. Regular Monitoring: Continuously monitoring the business environment to detect and respond to risks promptly.