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For instance, a company might decide not to enter a politically unstable foreign market due to worries that they’ll have to pay bribes to government officials, or maybe even have their physical assets seized arbitrarily. Rather than risk loss or legal trouble, they avoid that nation altogether, even if it means passing up a growth opportunity.
While this can be effective in preventing losses, it also comes with trade-offs — namely, missed opportunities for innovation or growth. In fact, a company that avoids all risk is basically paralyzed, as it cannot launch new initiatives or seek new markets
Risk reduction
Risk reduction, sometimes referred to as risk limitation, aims to minimize, rather than eliminate, the likelihood or impact of potential threats. Under this strategy, enterprises implement safeguards — such as internal controls, redundancies, or safety protocols — to reduce its severity or frequency.
in well organized HTML format with all tags properly closed. Create appropriate headings and subheadings to organize the content. Ensure the rewritten content is approximately 1500 words. Do not include the title and images. please do not add any introductory text in start and any Note in the end explaining about what you have done or how you done it .i am directly publishing the output as article so please only give me rewritten content. At the end of the content, include a “Conclusion” section and a well-formatted “FAQs” section.
