Commercial activity. Ways to reduce risk (lecture notes)

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Commercial activity. Ways to reduce risk (lecture notes)

Lecture notes, cheat sheets

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48. Ways to reduce risk

To reduce the level of possible risk, there are several ways that a successful entrepreneur needs to know. Let's name the main ones:

1) before starting a business operation, it is necessary to assess possible losses in the course of this operation, determine their magnitude and frequency of occurrence;

2) do not avoid risk, but try to reduce its level;

3) if a businessman has decided to take the risk of probable losses, it is necessary to use insurance for the operation.

This method leads to a reduction in risk. Insurance covers property, health, life, commercial operations, safety of transported goods. In the case of insuring a business transaction, the entrepreneur is obliged to make insurance premiums, which in its own way is a certain loss of funds.

If the level of risk is acceptable, i.e. the amount of losses does not exceed the expected profit, a businessman can decide to conduct a business operation:

1) if the probability of a critical risk is sufficiently high, there is a need to conclude an operation agreement, according to which the possible risk is divided among all participants so that later losses can be compensated by joint efforts;

2) with a high level of probability of a critical risk, it is necessary to organize a reserve fund, having determined the sources in advance

compensation for losses;

3) you cannot start a business operation with a high level of probability of catastrophic risk, as a result of which the business activity may end in failure. If a company has a dominant position in the market, it needs to use a strategy such as market expansion. To do this, the company must search for and attract new consumers, new ways to use products, and increase the intensity of use of the company's products.

One of the ways to reduce the level of entrepreneurial risk is to protect market share from the attacking actions of competitors. An effective way to protect is the constant introduction of new products and services. There are defensive strategies that reduce the likelihood of attack by competitors. Defensive strategies include:

1) protection of the flanks;

2) positional defense;

3) pre-emptive defensive actions;

4) counterattack;

5) mobile protection;

6) reduction.

Authors: Egorova E.N., Loginova E.Yu.

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