Small Business has to deal with many opportunities and risks. The way in which a business handles risks directly impacts time, money and resources of an organization. It depends on the business owner‘s policy that what kind o strategy they use to face the risks. There are four options which a business owner has to handle risk:
Accept the Risk
One of the best strategies to handle risk is to accept the risk and face it. Organizations need to understand the different external and environmental risks. Business owners need to be very careful about the challenges they might face. They need to accept the challenges and come up with the best solutions possible. Accepting the risk is important because if you won’t accept the risk, you won’t be able to devise strategies to solve the risks.
Avoid the Risk
Some business owners realize the presence of risk, but instead of accepting the risk and solving it they avoid the risk. Owners who accept the risk do something to resolve it. Avoiding risk is not a sensible strategy because avoiding risk does not mean that the risk has vanished. It actually means that you are closing your eyes to the external challenges and you will have to face the risk one day or the other.
Mitigate the Risk
Another option for the business owner is to mitigate the risk. Mitigating risk means that you are reducing risks by implementing controls, fixes or other countermeasures that have a direct effect on the risks identified.
Transfer the Risk
Last option to deal with risks is to transfer it. Transferring risk can take various forms such as cyber liability insurance and outsourced services.