Businesses assess and manage risk to protect their assets and investments by following a structured risk management process. This process typically involves identifying potential risks, analyzing and evaluating the likelihood and impact of those risks, implementing risk mitigation strategies, and monitoring and reviewing risk management efforts regularly. Common risk management techniques include risk assessments, risk registers, insurance coverage, diversification of investments, contingency planning, and internal controls. By proactively identifying and addressing risks, businesses can safeguard their assets and investments from potential threats.
