The risk factors and
mitigation strategies include:
Avoid the risk - In this, one can choose not
to borrow money to finance a given project: Expand the facilities
of company and its clear that if i the expansion project cannot be
financed then it cannot be carried out.
Reduce the risk - Install warning signs to
alert people in case there is any possible risk
Share the risk - Contract multiple suppliers
for each of the products and its clear that a comapny that is
dedicated to have different suppliers has to ensure they make
products even if raw materials are insufficient
Retain the risk - Agreeing that small risk of
a client defaulting on payment is worth taking since this will
provide prospect for other clients