Question

Business risk can be managed by reducing the risk to an acceptable via management controls ingrained in business

Answer 1

Business risks can cause a hindrance to the company's ability to provide its stakeholder and investors with expected returns. But these can reduced via proper control by management with the identification of the internal risks and external risks. The external risks such as economic slowdowns, changes in policies are out of control of management. But the internal business risks such as poor morale, labor shortages, union strikes, ineffective supervision, dishonesty by employees, and technology issues can be identified and forecasted with some reliability by the management. The timely action on the implementation of new standards and polices, procedural changes and physical changes can eliminate or reduce certain risks within a business