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Business strategy
Is the higher the risk;the higher gain justifiable in business?
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[QUOTE="Mataracy, post: 131225, member: 28733"] In the a business world of today people normally say that;the higher the risk taking the higher the returns or gain.But sometime if the care is not taken the revers will be the case. It is therefore advisable that every company should have risk manager that is more experienced and intelligent. Though the risk appetite of some individual or company is very low may be they are panic may be loss of resources may occur(remember that risk is under probability of win or loss). In other word; a company needed to accept some risk in order to make profit. A company may take risk if its management decides that the rusk of loss is justified by the expectation of a gain. Before taking any risk,the risk must be first identified. The risk must be rank in order of significant (order of priority). The management should know may be the company needed yo take that risk urgently. The company should make sure that the risk must not affected the shareholder or the customers; employee,creditors,communities and general public government and business partners. The risk should also be measured that is; quantify may be it can be manage through setting target for maximum or high risk tolerance and measuring actual performance against the target. Is the higher the risk the higher the gain justifiable? [/QUOTE]
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Is the higher the risk;the higher gain justifiable in business?
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