There are several strategies businesses can employ to reduce risks:
Risk Avoidance: Eliminate activities that pose significant risks. Risk Mitigation: Implement measures to reduce the impact or likelihood of risks. For example, adopting technology solutions to improve operational efficiency. Risk Transfer: Shift the risk to a third party, such as purchasing insurance or outsourcing certain functions. Risk Acceptance: Acknowledge the risk and prepare for its potential impact, often used when the cost of mitigation is higher than the risk itself.